Late yesterday I looked on as another talking head declared a Chinese hard landing was off at Gina’s mining newsletter:
Graham Harman, Russell Investments’ Asia-Pacific strategist, said that China’s policy move fit neatly with the ‘bad news is good news’ mentality of investors. “We’re in bull market mode, with zero interest rates and a recovering world economy your broad pre-disposition is to be positive about all that. If you then get negative news but if it immediately elicits a rate cut or a stimulatory package be it from China, Japan or Europe… the market has been very much taking these things as good news,” he said.
Has it? Are we? There’s no bull market in Australia. There is a raging mining bear market and deeply troubled rebalancing. As well, the market response to the PBOC move has been conspicuously weak. Mental note: sell Graham Harman.