Ok, fuck it: one more time with the China story on Sunday.
If you’re a regular, you’ll recall this chart from last week:
The gist of that is that thanks to Beijing’s ongoing effort to deleverage the country’s out-of-control shadow banking system, China’s credit impulse is about to go into reverse and that presages nothing good for global equities which have so far steadfastly refused to roll over.
Well, just to drive the point home, here’s what amounts to another riff on that same chart. So this is China’s credit impulse plotted with a lead on global manufacturing PMIs:
Anyone want to speculate on how that’s likely to turn out?