The Chinese Can’t Open Commodity Accounts Fast Enough


The Chinese are now commodity futures traders. Why buy stocks and bonds and then get blown up with a $5 trillion market rout that we saw recently, when you can just buy steel rebar futures with reckless abandon.  Cotton futures are hotter than a two dollar pistol too.

That’s what’s happening now. One bubble to the next. Its all fun and games until someone takes an iron future to the face.

From Bloomberg

The frenzy echoes the activity that fueled China’s stock market last year before a rout erased $5 trillion, and follows earlier bubbles in property to garlic and even certain types of tea. China’s army of investors is honing in on raw materials amid signs of a pickup in demand and as the nation’s equities fall the most among global markets and corporate bond yields head for the steepest monthly rise in more than a year.

First of all, I had no idea there was such a thing as garlic futures. Obviously your average guy in China is expert though.

Ride the bull I guess, but don’t be the last guy at the party.

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