The contagion has already happened. With Evergrande we are looking at trillions of dollars lost in property value. the implosion will cause devaluation of chinese currency and dumping of Chinese goods around the world. Ta-da ..here comes the deflation. Combine that with the higher corporate taxes and soon to arrive higher interest rates. You got yourself a Financial Bonfire.Investors are selling while imitators are buying.
I see more caution than euphoria. One more unfavourable financial news and people will run for the bank. If not, it could be a perfect recipe for the biggest Bull run of all times. I hold a neutral outlook and holding cash for now. I see more caution than euphoria. One more unfavourable financial news and people will run for the bank. If not, it could be a perfect recipe for the biggest Bull run of all times. I hold a neutral outlook and holding cash for now.
For the battery business to survive and pivot into the lithium ion batteries, they need significant investment and thereby debt. this does bring the valuation up but also the debt. If you look closely, the company has been loosing revenue due to slowdown in the automotive business which wont improve in the next two quarters. In short, you can wait now and buy for a better price in a few months. :)