Nathan Bell from Intelligent Investor says he and the team have been preparing their model portfolios for a (rapid) slow down in China's economy for two years...

Nathan Bell from Intelligent Investor says he and the team have been preparing their model portfolios for a (rapid) slow down in China's economy for two years now. Influencing Bell's thinking on China right now is the countries position on this chart of the 'Global Leverage Cycle' (VIEW LINK) . China's credit boom remains in full swing despite attempts from the authorities to rein in lending and control house prices. Credit growth for the year up until September 2013 was US$2.3trillion, a 20% increase on the record growth in credit in 2012. From a portfolio perspective Bell is looking to increase exposure to businesses with large overseas divisions and is avoiding or reducing our exposure to highly priced businesses that are highly leveraged to a strong Australian economy. So is your portfolio positioned for a China slowdown? Full blog post here (VIEW LINK)


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