Patrick Wolff, the chess master who became a hedge fund manager is predicting a stock market crash to happen in China. This he says is due to the dangerously high levels of corruption as well as bad debts that the country is undergoing.
Wolff spoke at the sidelines oif the GAIM conference being held in Monaco to Reuters this week. He said that investors were too focused on trying to work out easy money policies that would taper off in the United States and at the same time putting no importance to the correction that is pending in China.
According to Wolff, "People are talking way too much about the Federal Reserve and not enough about China. We've been saying that the US is the safes place to invest, while China is a crash waiting to happen."
He is investing short on Chinese stocks and long on US equities. As managing member of Grandmaster Capital, the San Francisco based hedge firm, he said that it was a 'non-issue' at the US Federal Reserve was 'highly unlikely' to tighten monetary policy as there is no evidence that the American economy was overheating.
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