How to profit from the collapse of the China bubble?
There are clearly multiple bubbles happening in China: real estate, manufacturing, commodities, etc.
What are some good ways to profit from the inevitable collapse? Of course, bubbles can sometimes go on for much longer than people expect--so, puts or their equivalents would be one approach, rather than outright shorts.
A few ideas to get the ball rolling:
-- short construction-oriented commodities, such as copper, steel and coal
-- short shipping companies
-- short copper mining companies
-- short the Singapore stock market
There are also a bunch of companies that trade on US stock exchanges that derive most of their revenue from China. Which ones would make good shorts?
When China collapses, how will that impact the economies of the nearby countries, such as India, Russia, Japan, Korea and Taiwan?
What would happen to the prices of oil and gold in the event of a China collapse? Would oil decline significantly due to a sudden decline in demand? Would gold increase as people in China flee the yuan in favor of something concrete (in fear of currency devaluation)?
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