The Middle East provides clues on the outcome of the meteoric recent rise of the Chinese stock market, warns Tim Harris, JPMorgan Private Bank’s chief investment strategist in Europe, Middle East and Africa.
“When a liquidity-inspired bull market takes to the wing, it is difficult to judge its scope and momentum by traditional valuation tools alone,” he says. “But there are parallels between Chinese equities and the bubble that developed and burst in many Middle East markets over 2004-06.
