Three Popular Delusions for 2013
January 19, 2013 - 12:56pm
Three popular delusions to be aware of for 2013: Popular Delusion #1: The investment world believes China will engage in another massive round of stimulus. This will not be the case. China’s new ruling party has stated point blank that the country will not be engaging in rampant stimulus (for the obvious reasons of rising inflation): This may sound like an oxymoron, but China‘s new Communist government is turning away from financial stimulus to help its slow-?moving economy. During the party’s two-?day Central Economic Work Conference this weekend, party leader Xi Jinping said the country would essentially not be pursuing high growth rates through stimulus. That doesn’t mean that Beijing has turned sour on fixed asset investments on things like roads, bridges and subways. They’re still going through with major urbanization projects. But when...
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