"China’s rise has been fueled since 2007 by a bubble in credit there. Faber was vague on when it would burst — now or in three years? — but it’s unsustainable. What’s more, foreigners should beware investing in China’s ongoing construction boom.
Dr. Faber pointed to virtually all U.S. canal and railroad companies going bust in the 19th century, ruining many a foreign investor but leaving North America with an enviable set of infrastructure. He said the Chinese don’t issue shares in companies to “enrich foreigners” but to “impoverish foreigners.” If a foreigner wants to make money in China, Faber said, they should go work there." - in WSJ Blog
Related: IShares FTSE/Xinhua China 25 Index ETF (FXI)
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
