21–30 of 86 posts
Ignored is the fact that market was up 150% in the preceeding 12 months of its top. It's an extremely volatile market and a large selloff would be expected, probably inevitable. It's still up for 2015. Not exactly a crisis.
Ignored is the fact that market was up 150% in the preceeding 12 months of its top. It's an extremely volatile market and a large selloff would be expected, probably inevitable. It's still up for 2015. Not exactly a crisis.
It's lost 30% of its value, was that to be expected? Are you saying it won't fall any further? To me, it seems that you are glossing over a large stock market crash. Talking about it being 'to be expected' is a nonsense. If the market is so predictable, kindly enlighten us about what happens next, rather than being wise in hindsight.
No market is predictable. That is why you don't try to do it. Invest regularly, i.e. dollar cost averaging. The couple who invested their entire savings in one shot during an obvious run-up made an all to common emotional mistake.
OC I haven't studied the situation there in any depth.
The Economist predicted this crash in May, and has a series of good articles about it: http://www.economist.com/blogs/freeexchange/2015/05/chinas-s... China's stockmarket is sufficiently weird to defy most normal analysis though: there are heavy restrictions on who can list and who can invest, plus China in general has lots of money sloshing around looking for a decent place to invest, because the usual mainstays lik…
>there are heavy restrictions And don't forget the fact that short selling was illegal until earlier this year, and even now only a limited number of stocks are allowed to be shorted.
... which means the crash will be even faster and more brutal.
Remember, short positions close by buying the shorted security. This means that in a healthy (albeit declining) market there is always buying at every level down as shorts cover.
Limiting short selling is a misguided feel-good move ... a PR stunt that only serves to make the pain worse.
Earlier quoted context omitted.
It's lost 30% of its value, was that to be expected? Are you saying it won't fall any further? To me, it seems that you are glossing over a large stock market crash. Talking about it being 'to be expected' is a nonsense. If the market is so predictable, kindly enlighten us about what happens next, rather than being wise in hindsight.
Just eyeballing the chart in the story, it's still up 10% from January 2015. That's not a bad return. This looks like a correction of a ridiculous overvaluation spike to me. No market is predictable. That is why you don't try to do it. Invest regularly, i.e. dollar cost averaging. The couple who invested their entire savings in one shot during an obvious run-up made an all to common emotional mistake. OC I haven't st…
Ignored is the fact that market was up 150% in the preceeding 12 months of its top. It's an extremely volatile market and a large selloff would be expected, probably inevitable. It's still up for 2015. Not exactly a crisis.
It's lost 30% of its value, was that to be expected? Are you saying it won't fall any further? To me, it seems that you are glossing over a large stock market crash. Talking about it being 'to be expected' is a nonsense. If the market is so predictable, kindly enlighten us about what happens next, rather than being wise in hindsight.
Corrections are not the same as crashes that wipe out 20 or 30 years of gains. The index is still up for the year. It is very disturbing that the govt. rushes in to attack short sellers and prop up the market artifically, funneling money into it. They show no enthusiasm to attempt to curb the bubble as its growing as the mkt is on the way up. In that way they are the same as the western world.
China is in deep trouble; it has a total debt to GDP ratio of 282%, the highest compared to the other big gdp countries. ( http://bloom.bg/1evYSQ5 ). The housing bubble has already burst in the 3rd and 2nd tier cities in China, and the 1st tier cities are close to bursting. And the shanghai stock market is close to retracing back to 2000, since the current stock market has a p/e ratio that's 41% higher than that of U…
I think there's a ton of economic incentive for the rich to leave China and move to the US. In fact, I'd argue it's happening now already, regardless of the performance of the Chinese economy. Some observations: - The luxury goods that the rich in China are looking for are much cheaper here in US. The international students I know at school go on insane shopping sprees at the Apple/Sony/Microsoft stores since how "ch…
Earlier quoted context omitted.
It's lost 30% of its value, was that to be expected? Are you saying it won't fall any further? To me, it seems that you are glossing over a large stock market crash. Talking about it being 'to be expected' is a nonsense. If the market is so predictable, kindly enlighten us about what happens next, rather than being wise in hindsight.
They call them corrections for a reason. Extreme moves in one direction increase the likelihood of extreme moves in the opposite direction. You can chart volatility just like you can chart the price. Volatility is high right now. Corrections are not the same as crashes that wipe out 20 or 30 years of gains. The index is still up for the year. It is very disturbing that the govt. rushes in to attack short sellers and…
Even by your extreme measures of what a crash is, you have to realise that they don't happen instantly... who knows how long the market might sink for... Or rebound?
China is in deep trouble; it has a total debt to GDP ratio of 282%, the highest compared to the other big gdp countries. ( http://bloom.bg/1evYSQ5 ). The housing bubble has already burst in the 3rd and 2nd tier cities in China, and the 1st tier cities are close to bursting. And the shanghai stock market is close to retracing back to 2000, since the current stock market has a p/e ratio that's 41% higher than that of U…
I think there's a ton of economic incentive for the rich to leave China and move to the US. In fact, I'd argue it's happening now already, regardless of the performance of the Chinese economy. Some observations: - The luxury goods that the rich in China are looking for are much cheaper here in US. The international students I know at school go on insane shopping sprees at the Apple/Sony/Microsoft stores since how "ch…
Earlier quoted context omitted.
Just eyeballing the chart in the story, it's still up 10% from January 2015. That's not a bad return. This looks like a correction of a ridiculous overvaluation spike to me. No market is predictable. That is why you don't try to do it. Invest regularly, i.e. dollar cost averaging. The couple who invested their entire savings in one shot during an obvious run-up made an all to common emotional mistake. OC I haven't st…
But you're implicitly making a prediction or an assumption here, namely that there has been a correction. That there has been a correction. Are you sure that the market won't fall another 30% in the coming weeks?