Singapore's Investment Chief: We Invested Too Early In US Banks

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The classic line of frustrated investors: We had the right idea, We were just too early.

Such is the claim Lee Kuan Yiew, the former Prime Minister of Singapore and chairman of The Government of Singapore Investment Corp sovereign wealth fund. His firm bought into Citi and UBS early on in the crisis, investments that have turned out horribly. Long term, he says he still likes financials.

Long term, for the world, watch for China to continue to offload dollars.

FT: He predicted that China might increase investments in US assets, including property and natural resources, even if it decided to reduce holdings of US treasuries. China and the US have a “mutually reinforced dependency”, since the health of the Chinese economy was dependent on the US as its main export market.

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