Goldman Sachs has not had a good Chinese crisis. It has significantly underestimated the scale, breadth and policy determination of China’s property adjustment.
- It has recommended both buying and selling copper.
- As iron ore crashed earlier this year, it upgraded its forecast price to over double its current value.
- As Chinese property swooned, it declared infrastructure would soon come to the rescue of growth before declaring infrastructure dead a few months later.
- It has been forced to repeatedly cut its growth outlook and is still too bullish.
Now it is buying distressed Chinese developer debt: