Why China Is The Mother Of All Grey Swans

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Vitaliy Katsenelson has updated his great presentation on the Chinese black swan with some new slides and a more accurate title (via My Investing Notebook/market folly).

The Chinese crash is actually a grey swan because it is a rare, significant, but predictable event.

Therefore investors have no excuse to get caught off guard. But with China on track for spurts of world-beating growth over the next two decades, capital will get sucked in and many get burned.

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