Interesting thoughts about China's prospects.
Commodities are trading at all-time highs and emerging markets now are considered safe havens. In that way, both asset classes are much like technology was seven years ago. Because countries like China use six times as many inputs to produce the same unit of economic output, once developing economies slow down, the air will be let out of the commodity bubble with alarming rapidity. And for all their terrific prospects, emerging markets are a series of booms and busts. The development of the world's most successful emerging market -- the United States -- was no different. As John Paul Smith put it in yesterday's Financial Times: "Even if the secular story is valid, if the price is wrong, stay clear."
http://www.theglobalguru.com/article.php?id=176&offer=GURU001
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