Bert Dohmen: China Still the Greatest Threat to Global Markets

Posted by Bert Dohmen via Financial Sense

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china-economy-crash

china-economy-crashAfter a brief plunge following the Brexit vote, the S&P 500 is now up an astonishing 8% in less than two weeks as markets now anticipate a greater amount of fiscal and monetary stimulus. “We’re in unchartered territory,” says Bert Dohmen, President of Dohmen Capital Research Group, on today’s podcast.

More hints of liquidity, helicopter money, or whatever attempts to forestall a correction or economic slowdown reveal one important thing: central bankers “have no idea of what they are doing” and by juicing assets higher and higher, the eventual correction will only be that much greater, he told listeners.

Noting that the stock market bubble, as he called it, could go on for much longer than reasonable analysts expect, China still presents a major threat to global markets and will likely put a drag on global economic growth in the years ahead.

Here’s what he had to say….continue HERE

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Be sure to read Michael Campbell’s – The Most Important Statement in a Generation