Bill Gross, who in April said a bet against German bunds is the “short of a lifetime,” said the next new opportunity is wagering against Chinese stocks.
Gross’s bet against bunds is now “happening,” he wrote in a Twitter message on Wednesday. “Up next - China Shenzhen index. Not just yet...”
“Chinese retail investors are opening up new accounts at a record pace and fueling the almost hyperbolic rise in prices,” he wrote. “At the same time, Chinese exports are slowing and its currency -- the yuan -- is becoming increasingly uncompetitive to other Asian currencies because it is tied to the dollar.”