The Rising Influence of Rising Affluence

[Democritus_of_Abdera]

Feedback on Chano's thesis (i.e. China is about to implode in a spectacular real estate bust)...

If true, there are now at least two macroeconomic risks that could seriously and negatively impact VALE:

1) A dramatic slowdown in Chinese construction would decrease iron ore importation... VALE has a large fixed investment in ships and relies upon China for 40% of its revenue (per #msg-56791233 & #msg-56677555 ... I have not personally verified these statements)....

2) VALE is subject to Brazilian political risks ala Petrobras (see #msg-56473949)