The Chinese demand for commodities is unsustainable and will see a correction over the next few years that will impact Australian resources companies, according to Investors Mutual investment director Anton Tagliaferro.
"If it looks like a bubble, smells like a bubble and feels like a bubble - it generally is a bubble," Tagliaferro said.
"Over the last 12 months, if you look at the amount of money the Chinese government has spent, the amount of money the banks were forced to lend, the amount of infrastructure that has been built, that has a huge expense on China. It doesn't feel that sustainable.
"I can't tell you when it will slow, but I would have thought that over the next year or two there will be a highly sizeable correction in Chinese commodity imports and that should rub off on our resources."
As a result of this view, Investors Mutual has a relatively small exposure to resources stocks in its Australian equities portfolio.
"We have exposure to BHP Billiton and Rio Tinto and some small stocks, which together are about 10-12 per cent of the portfolio," Tagliaferro said.
Resources stocks make up more than 30 per cent of companies listed on the Australian Securities Exchange.
