Geopolitics and Economics: Niall Ferguson Calls for a Strong U.S. Role, Concerned about China

Niall Ferguson of Harvard spoke with Barron’s about the interface of geopolitics and economics in the U.S, and globally. He emphasizes the importance of political stability to economic prosperity, noting that “[g]lobal order and stability need to be underwritten. It doesn’t just happen.” He opined that “[t]he global economy needs a strong hegemonic power to reduce conflict, ensure freedom of the seas, and so forth.” Therefore, he believes that the U.S. needs to act as a global policemen, noting, “[i]t better not be the Chinese or the Russians.”  The reason: “A world in which the U.S. yields regional power to […]

Chinese Easing Might be Magic Formula for Stocks says Tepper

In a recent CNBC interview, hedge fund manager David Tepper says, “if there was a magic formula, it would be China really easing a lot, and I consider them much much too tight still and they play a lot of games with their economy.” He continued, “not one quarter, but . . . a couple hundred basis points.”  Tepper opined that “the United States is great,” it is China “that’s really causing the problem; it’s everything related there.” He said the situation makes it “really hard for the Fed” and “people may underestimate . . . how fast the Fed […]

Herro Talks China, Oil

Fund Manager Of The Decade David Herro says that, while they are causing short-term bumps, the decline in oil prices and reforms in China should help investors down the road.

Bolton Sees China Turnaround

Top U.K. fund manager Anthony Bolton says he’s expecting a rebound in Chinese growth next year. Bolton tells Investment Week that he thinks China’s growth has actually been slower than the official 7.5% figure being cited this year. “The headline figure is not reliable and I think growth has come down below that this year,” he says. But he sees better growth in 2013, and says that economic improvements and the fact that China’s elections are over should help spur Chinese stocks next year. “The bear market will change soon in the A share market,” he said. “The economic cycle […]

Mobius High on Coal

Templeton Emerging Markets Group’s Mark Mobius says he’s bullish on Chinese coal companies. “These companies are not only mining but also producing power and the demand for power is insatiable in China and everywhere else in the world,” Mobius tells Bloomberg. His funds currently hold shares of coal companies Shenhua, Yanzhou Coal Mining Co., and China Coal Energy Co. Chinese coal companies have been rebounding from their cheapest levels on record, Bloomberg reports, and Mobius thinks some may be ready to expand. “The slowdown that we’ve seen in global markets means there’s an opportunity for these companies to buy mines […]

Bogle: China “Sinking”, U.S. Best Developed Market

Vanguard founder Jack Bogle says the U.S. is faring better than the rest of the world, and that China’s economy is “sinking quite a bit” right now. “The fact of the matter is our economy, U.S. GDP, is the best performer in the developed world by a good margin and the rest of the world has not made this kind of recovery,” Bogle tells Fox Business Network. “China is of course much more rapidly growing, but seems to be sinking quite a bit.” Bogle also talks about the need for regulatory clarity. “We have to get some clarity as to what […]

Tilson: China Is “Completely Uninvestable”

While Chinese stocks have fallen in recent months, top value investor Whitney Tilson isn’t seeing value in the Asian giant. In fact, he says China is “uninvestable”. In an email to ValueWalk.com, Tilson explains how his father appears to have been scammed after recently buying a product from a Chinese website, “yet another case study that reinforces my belief that if you do business or invest in China or with Chinese companies, there’s an alarmingly high likelihood that you will get scammed”. Tilson says that rather than trying to address fraud, the Chinese government “instead … attacks those who seek […]

Bolton on the Contrarian Case for China

While many investors are fleeing Chinese equities, Fidelity’s Anthony Bolton remains bullish. “People are generally cautious and are taking money out of China which, as a contrarian, I see as positive,” Bolton says, according to Investment Week. Bolton, who compiled an exceptional fund management track record in the U.K. before moving on to a China fund a couple years back, says that local, private Asian investors generally have most of their money in cash on deposit, and little in bonds and equities. “It is this money that will drive the market when the market turns,” he said. “People are not […]