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There are few investment ideas that show the power of groupthink better investing in Chinese stocks. For years, we have seen investing legends crippled by such investments as one after another they fell prey to the inherent sovereign risk of the CCP.
Sure, there are fortunes to be made. But there are fortunes to be lost just as easily, more easily than any other major economy on earth.
The last round of greater fools taken to the Chinese slaughterhouse were tech investors on the end of the latest round of power grabs by the CCP, which will not allow the rise of anybody to positions of power that are not directly sanctioned by the party.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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