China on the verge of recession?

Not this year but possibly the next. None believes the official GDP growth numbers from the Chinese government. Throw in a power struggle and that electricity consumption had a startling drop in April and many are on edge about their investments in this country.

Count Jim Jubak and I among those bearish. He's got a good article up today about why China could be headed for more than just a hiccup in it's economy. I think the real estate bubble in Shanghai and the smaller cities could tip the scale.

In a market that is hard to get reliable stats for, I would try to focus on power consumption and non-performing loans numbers to try to predict where this market is headed.

BRICs still not cheap enough yet?

Troubling signs of slow growth in India and a weak rule of law in Russia contribute to the fact that the BRICs still might not be low enough for the cautious investor. The BRIC Bear Market still has a ways to go. Throw in the uncertainty with the ruling Communist Party in China surrounding Bo Xilai and the subsequent power struggle, and we may have a ways to go before things stabilize. Plummeting housing prices are sparking fears of the housing bubble bursting in cities all across the Middle Kingdom as well.