Thursday 27 May 2010
"China reaffirms confidence in Euro Bonds"
Just saw a series of news clips on multiple TV channels and read a few articles in the past several hours that various global indices are inching north because China has re-affirmed its confidence in Euro Bonds and "are not selling out".
As usual, I'm amused.
Even if you are an ordinary fund manager of a mid-sized mutual fund, if you are holding a few hundred thousand shares of a Reliance or TISCO or Suzlon which you plan to liquidate, you're certainly not going to be publicising the fact. Even if you're asked whether you've lost confidence in XYZ Ltd. and whether you're planning to sell out - even in a private conversation, you're certainly likely to either deny outright or respond with a vague "No comments".
And you expect China, one of the biggest investors in Euro Bonds - GLOBALLY - to actually give advance notice about their plans to sell out!