China's inflation issues may help underpin global equity markets

Equities are the asset class to buy on a five-year view, underpinned by strong demand from Chinese i...

Equities are the asset class to buy on a five-year view, underpinned by strong demand from Chinese investors in the view of Lombard Street Research's Charles Dumas. In the shorter term, he estimates some four million mortgage defaults in the US by 2009 from overleveraged consumers suffering falling house prices. In the US today it takes an average 10.5 months to sell a house, according to Lombard Street, showing just how weak the market has become. While he sees a US consumer recession as likely, he does not think this would spread to the overall US economy because the government would ...