Damien’s portfolio update: Dripping out

4 min Read Published: 28 May 2015

waterFor some time China has troubled me. I've covered in detail the prospects for China in my recent piece - Chinese equity funds – bubble or buy?.

As you know I timed my original entry point into Chinese equities well, getting in just before the market soared 15% in mid April. So why am I troubled? The reason is because, as I've pointed out before, the Chinese stock market is in a bubble. Yet it is now showing increasing signs of lunacy. We've seen companies' shares plummeting 50% in a single day. We've also seen property companies simply change their name to imply that they are involved in the technology sector, when they are not. Their share price soared, simply as a result of Chinese investors scrambling to buy anything tech related. There are even tales of traders paying people to borrow their identities so that they can open up multiple trading accounts, fuelling the rally further.

Full article available exclusively to 80-20 Investor members.

To read the complete article, sign up for a free trial or log in below.