Peter Zeihan on why investing in China is like gambling in a failing casino. He warns that political uncertainty makes the market unpredictable and that Chinese markets don't follow Western rules, making short selling especially risky if things collapse.
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So, when you're investing, if you're someone that's going to invest in China, are you just hoping and wishing that Xi has his graceful eye on your sector or your industry? How do you make bets based off of someone that's really flying by their own will and consciousness? Any thoughts there?
I'm not going to tell people how to invest. That's not my world. I will point out that you have to think of China today as basically gambling when you know that the casino is on the way out the door and it's going out of business. And if you want to short sell that, keep in mind that for a short sale to work, somebody has to take the other side and the market itself has to survive. If you look back throughout history, in the world before 1950, most markets went to zero and a short sell just meant you lost everything. So just keep that in mind. This is not a normal Western-style market at all.