SOS There are cracks in the BRICS

Oh, commodities, commodities on the wall, who is the greatest of them all.
Crude oil? Copper? Gold? Natural Gas? Sugar?

The answer is in China. China goes, commodities goes. So, what is the likelihood China going for a hard landing? Not much, looking at it credit growth for the last 10 years, and number of properties is more than its demand, hmmm, there is a very worrying factor.

MyView

Almost no countries can grow indefinitely on "drugs" or "debt". When the household affordability is above 10 times, I believe the risk is very very high. Doesn't matter the loan is not taken by owner, but it is taken by developer. Over gearing is over gearing, disregard, whether it is developers or household owners. Glut is glut, when you supply way above the demand, velocity will definitely drop.

Rental yield, affordability ratio, gearing in the industry don't lie. If it get to a historical high, one have to be careful. There is always reasons and logical explanations for the new high.

So CHINA, the ball is in your court.