Today I'd like us to think about sustainability. The Mayfly is a species of insect that goes from egg to death sometimes in as little as 30 minutes, and never more than a day. Take note, because as investors we have to be wary of the same rapid fluxes in economies. I'm of course speaking of the hype surrounding the Chinese economy lately. Everyone is talking about China this week, and rightfully so, as its GDP is nearing Japan's and could become the second largest in the world. But is it sustainable? Or a boom-and-bust similar to the Mayfly?
I'm sending you an interview with a STRATFOR analyst who, unlike the hype, says China's economy is weak and unsustainable. Find out what indicators he's looking at by <<watching this video>>. While you're at it, sign up to receive their free weekly intelligence reports. You'll enjoy the unique & global perspective.
John Mauldin, Editor
Outside the Box