It turns out, quite a lot. The ability of real assets to retain their inflation-adjusted value over time is hugely valuable. Relatively small differentials in annual returns can compound up into huge differences in outcomes over long periods of time. However, knowing whether an asset is in a bubble comes down to a debate about appropriate discount rates.
We are fast approaching the Chinese leadership reshuffle in late 2017. Attention could turn from the current period of relative calm and stability to the medium-term challenges lying ahead. In this context, we are likely to encounter three myths about China’s growth slowdown.;