However, chances are these governments driven policies (cheap credit) causing economy overheating and pushing interest rate higher. Had private credit contraction succeeded government credit expansion, market crashes.
Hedge fund manager Jeremy Grantham wrote in his Q1 2011 letter:
To make money in emerging markets from this point, animal spirits have to stay strong and not much can go wrong. This is possibly the last chapter in a 12-year love affair…from now on, we must be more careful.
|Shanghai Composite Presidential Cycle|