In an interview with Livewire, Nathan Bell, Head of Research at Intelligent Investor, warns that a key theme driving his investments is the anticipated slowdown in the Chinese economy. We are really trying to structure our portfolios away from, what could possibly be, the start of a new crisis, says Bell. We've got mining investment that's currently running at 8% of GDP versus the long-term average of 2% - the fear for us is that the Australian economy and individuals are so heavily geared or leveraged into that. He warns investors to avoid resources, mining services and bank stocks as the resources boom unwinds. According to Bell, the mining boom has created a property bubble in Australia. We are going to look back at this resources boom and all we'll have to show for it is exceedingly high property prices and a heap of people in debt, warns Bell.
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