Wood Chipper Investing

You pass on housing because the housing market is slowing and pour into stocks. The crash hits. Next place to go? Bonds. Right before a currency devaluation.

Want Want: Investors turn to bonds after China's market plunge
China's bond markets are expected to see rapid growth in the next six months after investors pulled funds out of the turbulent stock market for better returns, according to Beijing's Economic Observer.

Following the stock sell-off in June, investors began to move their funds into fixed-income assets, and China's devaluation of its currency in August accelerated the situation, the paper said.

...Interest rates on average loans have dropped 80 basis points from last year, and those on notes fell 150 basis points, while mortgage rates are 140 basis points lower, the newspaper noted.

The newspaper said the situation of the rally being built on leverage, which China witnessed in the stock market during the first half of this year, is expected to hit the bond market during the second half, and noted that such an investment approach reduces the risk premium for investors.
Set your watches.

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