In a new interview with SumZero, Pareto Capital Management analyst Stanley Wang claims to have found a modern-day short-selling opportunity comparable to the opportunity presented in the mortgage market during the U.S. housing bubble: the Chinese economy.

Wang believes that the Chinese economic stimulus that has been in place since 2008 is now reaching the limits of its effectiveness and he has identified the single stock that provides the best short-selling opportunity to profit from China’s coming economic downfall: Melco Crown Entertainment.

Artificial Growth

According to Wang, the growth that Macau has experienced since 2008 has been a direct result of Chinese government stimulus.

“I believe it’s a relatively small amount of people who made a lot of money lending/building/using government money and wanted to celebrate their good fortune gambling in Macau,” he explained.

Revenue Reversion

As the government eventually turns away from the stimulus program, Wang predicts…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!