CLSA's Chris Wood Is Overweight Asia, China, Collapse of US Dollar Standard (CNBC, 3/1/2010)

Before this gets too old, Chris Wood of CLSA's Greed and Fear newsletter and "the man who predicted the subprime crisis (Telegraph, 9/2007)", said on CNBC to be overweight Asian equities, China stocks and gold, and sees the collapse of the US Dollar standard.  This CNBC video was on 3/1/2010 from the CLSA Asia-USA Forum. He sees the pullback in China stocks as a buying opportunity. Hedge fund manager Jim Chanos probably thinks you sell the rally after the pullback.
"My view is firmly that investors should remain overweight Asian equities with a focus on China and Indian stocks. In my view the over heating concerns in China we see this year, the incremental tightening we see in China represents a massive buying opportunity to buy more China stocks. The key point to understand is that the inflationary pressures we see in Asia this year are healthy, they reflect the fact that Asia has growth, it has income growth. Whereas in the Western World we still have this deflationary situation".

"...I'm expecting China to start an incremental appreciation of their exchange rate in the second half of this year. But only at an annualized appreciation of 5-7%, nothing dramatic".

"In my view China is not going to blow up, it's going to grow between 8-9% this year. This is incremental tightening, a natural pullback in stocks with the incremental tightening and it basically represents a massive buying opportunity".

"My view is that there's an inevitable end game as a result of all this massive spending of taxpayer money in the West and in Japan to bailout bankrupt banking systems. So my view, unfortunately, is the end game will be a systemic Government debt crisis in the Western world. It will probably happen in Europe but I think it will climax in the US and I'm expecting on a 5 year view the collapse of the US Dollar paper standard".

"Investors who want to hedge this risk need to own gold bullion, they need to own gold stocks and they need to own Asian and emerging market equities because in Asia and emerging markets you have strong fiscal situations and you don't a have systemic threat to the currencies."





I tried my best to quote Wood correctly. Also don't use a beta monkey to buy stocks when they bottom out. Here are recent articles on Wood.

Chris Wood Rains More Reality-Based Fire And Brimstone (ZeroHedge, 3/16/2010)
Chris Wood (CLSA) Latest Thoughts On PIIGS, Europe And China (ZeroHedge, 3/3/2010)

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