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Re: Will gold sell off along with all asset classes in the coming "Ka" phase?
Once again I don't know what is happening in China, but the funds in this region are not short of opportunities to deploy their cash. They are big investors in this region and worldwide in power generation, water treating and distribution, resource extraction and commercial real estate.
Will they make money? That's a good question. The very public Chinese investment in Blackstone is probably not indicative of what is really going on. However, these are government funds, largely run by bureacrats or quasi-bureacrats, mostly on salary, and seem to have a less demanding near-term return-on-capital-employed hurdle than typical private equity investors. As a consequence they will bid up asset prices (I've already seen a good example in the petroleum sector with which I am familar so have benchmarks to hand to compare). Time will tell...
Originally posted by touchring
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Will they make money? That's a good question. The very public Chinese investment in Blackstone is probably not indicative of what is really going on. However, these are government funds, largely run by bureacrats or quasi-bureacrats, mostly on salary, and seem to have a less demanding near-term return-on-capital-employed hurdle than typical private equity investors. As a consequence they will bid up asset prices (I've already seen a good example in the petroleum sector with which I am familar so have benchmarks to hand to compare). Time will tell...
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