http://ftalphaville.ft.com/blog/2011/05/11/565696/chinese-commodity-imports-are-falling/

Gosh, just do it already. Here are some leaders for bubble ideas:

gold, iron ore, zinc, lead, cotton, soybeans

all bubbles.

if you bought the ETN BOM (2x short base metals) in the middle of 2008 and sold into the market crash, you made 300%.

it’s tied to aluminum, zinc, and copper

But as China goes, commodities go. China’s share of world demand for leading metals like aluminium, copper, zinc, lead, nickel, and crude steel is about 40 percent, according to research obtained from Goldman Sachs. For steel, China commands nearly half the global market. (In 2000, its share of global demand for those metals was between 6 and 16%.)

Even these numbers understate the breadth of China’s impact. “Think how much steel is sold to Caterpillar or John Deere for capital goods that are sent to China,” Mansharamani says. “Or how much is sent to Brazil to mine iron for China. Think of the countries that get dragged down with a commodities slow-down — South Africa, Brazil, Peru. The world shipping sector.”

If China slows down even to 5% growth a year, that will take a booming commodities market down with it.

 

here are some more ETFs/ETN’s to consider owning as china / commodities crash:

zsl

gll

sij

smn

dzz

dust

czi

bris

 

By admin