market folly

We're posting up notes from the Sohn Canada Investment Conference 2015 (Capitalize For Kids.)  Next up is Anna Nikolayevsky from Axel Capital Management.

Anna Nikolayevsky's Capitalize For Kids Presentation

-    Fixed capex of 45% of GDP in China compared to 12% in USA
-    Set records on commodity imports, debts have skyrocketed, and there has been overinvestment
-    Causing ghost cities, real estate losses have caused input prices to crater
-    Led to capital flight out of China, fraud discovery, government subsidiary intervention, low prices and overcapacity.
-    All countries will be affected.
-    China contagion risk will hurt resource heavy countries and industries.
-    Overlevered energy companies will be hurt by oil collapse and this will continue.
-    Charge-off rates at lows (a.k.a. bank bad loans likely to rise)
-    Canada and Australia have high consumer debts
-    USD appreciation causing international corporate defaults due to currency differences
-    Short Banks, Australia, and Canada
-    Trade to capitalize on devaluation in the USD.


Be sure to check out the rest of the presentations from the Capitalize For Kids Conference.