Should We Be Concerned about the China Bubble?

 

How concerned should we be about The China Bubble? Definitely not as concerned as the possible the bubble in our tech market or the collapsing Euro.

I also think this article lacks merit because a lot of the equity in the China market comes from savings rather than just borrowing. If there really is a China Bubble, as far as our local real estate market is concerned, I see it as a positive. The Chinese are super smart people, have a great handle on what’s going on globally and therefore are very likely to mitigate their risk and spread their eggs further afield than just their local market. That is, they will be more inclined to invest in real estate here in the US.

It makes sense to invest in US real estate. We are close to or at the bottom of our market. Leverage has never been better. Our economy is still the strongest in the world and with a world population at 7B and ever increasing, there is still a premium to Commercial Real Estate.