---
title: "Smorgasbord"
url: https://independentstockanalysis.com/smorgasbord-6/
description: "Both energy and industrialization of China related: China to Cut Retail Fuel Prices at WSJ . “Car makers are falling over themselves to get a slice of the…"
published: 2012-07-09
updated: 2012-07-09
---

# Smorgasbord

Published 2012-07-09

Posted on

by

J.J. Butler

Both energy and industrialization of China related: China to Cut Retail Fuel Prices at [WSJ](http://online.wsj.com/article/SB10001424052702303343404577516390714015470.html). “Car makers are falling over themselves to get a slice of the action in China, the world’s biggest market.” [Telegraph](http://www.telegraph.co.uk/motoring/news/9379506/Why-China-matters-for-car-makers.html)

The structural economic problems are huge, real and weigh heavily on sentiment ([Hussman Funds](http://www.hussmanfunds.com/wmc/wmc120709.htm)). But a thought process going around suggests auto’s and housing, yes those red-headed step children, might contribute meaningfully in a positive fashion going forward: [Econbrowser](http://www.econbrowser.com/archives/2012/07/current_economi_11.html). Before laughing, continue reading.

Indeed, auto sales are on track to be the best since 2007: “Strong June sales…prompting analysts to revise their consensus forecast of 13.9 million upward, to 14.2 million.” [Detroit News](http://www.detroitnews.com/article/20120704/AUTO01/207040346/1148/rss25)

Additionally, for ten consecutive months the construction sector has shown year-over-year job growth: [WSJ](http://blogs.wsj.com/economics/2012/07/07/number-of-the-week-has-housing-bottomed/). I believe residential rents have begun a secular climb with stellar fundamentals. Supply is so tight for decent rental housing that it is almost impossible to find, demand is pent up, and market psychology has shifted: [WSJ](http://online.wsj.com/article/SB10001424052702303933404577505260835025948.html). Even homeowner equity has improved after collapsing: [Mortgage News](http://www.mortgagenewsdaily.com/07062012_hamp_housing_scorecard.asp).

Meanwhile, seems everyone wants easy money. Fed’s Evans Supports More Aggressive Action to Aid Weak Economy at [WSJ](http://blogs.wsj.com/economics/2012/07/09/feds-evans-supports-more-aggressive-action-to-aid-weak-economy/). China’s Wen says policy fine-tuning needed to spur growth at [Reuters](http://www.reuters.com/article/2012/07/08/us-china-economy-policy-idUSBRE86705120120708). Remember, ever more stimulus is required to keep the party going: [Ritholtz](http://www.ritholtz.com/blog/2012/07/operation-twist-market-impacts/?utm_source=dlvr.it&utm_medium=twitter).

“He is probably the most successful long-term performer in the hedge-fund industry who has managed to stay out of the spotlight.” A nice little write-up on Seth Klarman: [Economist](http://www.economist.com/node/21558274).

“Given that China’s nominal GDP has soared at double digit rates for decades, why is anyone surprised Chinese house prices have risen rapidly?” [Money Illusion](http://www.themoneyillusion.com/?p=15182). India’s is having a tough year, but expectations going forward are strong: [India Times](http://economictimes.indiatimes.com/news/economy/indicators/gdp-may-grow-less-than-5-in-fy13-9-growth-likely-before-2016-standard-chartered-survey/articleshow/14772986.cms).