Time Bomb: The Shanghai Composite
Whoa! That's pretty much all I have to say. If you had the stomach to invest in something like the FXI ETF over the past few months, you've made more in Chinese stocks than U.S. major averages in the last four years. That's four years combined.
So, what happens when all of these Chinese consumers lose their savings in addition to the equity investments they have put on their credit cards? The answer is much different than the same question applied to the U.S. and European markets in 2000. Tick tock.
Has anyone heard anything about Chinese equities lately? Anything? Not I. That is because of the deafening roar of American equities being on a roll with the Dow being up an annualized rate of somewhere around 100%. So, I guess the Dow is going to double this year to 25,000.
So, what happens when all of these Chinese consumers lose their savings in addition to the equity investments they have put on their credit cards? The answer is much different than the same question applied to the U.S. and European markets in 2000. Tick tock.
Has anyone heard anything about Chinese equities lately? Anything? Not I. That is because of the deafening roar of American equities being on a roll with the Dow being up an annualized rate of somewhere around 100%. So, I guess the Dow is going to double this year to 25,000.
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