Week of August 28, 2023
All signs point to an end to China’s economic boom. Many economist puzzled over the country’s success as planned economies rarely exhibited such sustained and exuberant growth (see such failures as Russia, Venezuela, and Cuba as examples). Global economic growth likely persists, however, given the increasing role that other emerging far east nations play as well as countries such as Mexico and Brazil and the stimulating effect of artificial intelligence. We have changed our China Signal from yellow to red.
Bob Bilkie, CFA