Thursday, January 2, 2014

Equities are going higher, China rates rising fast

I'm still bullish of stocks. Stocks are going to go higher. But if there's something that I'm concerned about, it is China. The liquidity crunch is very serious. Usually, these things resolve themselves in a very benign manner. Usually, these problems just disappear after the turn of the year. 

But if you have to be concerned about something, be concerned about the fact that short-term rates in China have risen several hundred basis points.