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For them the euro is like the cockroach motel – you can check in, but you can never check out.
For them the euro is like the cockroach motel – you can check in, but you can never check out.
Imagine the US economy shrinking by 30% over the past four years, the Chinese economy growing at 2%, not 10%. Imagine UK house prices down 60% and commodity prices sliding back to the levels of the mid-1970s.
How much more “emerging” have the emerging markets left to do? Probably not much, given the vast amount of capital and hope invested in the asset class already.
The performance of the Chinese market now comfortably exceeds that of other classic bubble markets – Japan in the late 1980s and TMT in the late 1990s. Bubble markets have much in common, including the inevitable denouement.