Posted on 07/07/2015 6:15:38 AM PDT by Enlightened1
Looking to bargain hunt the recent plunge in Chinese stocks—bid up in an "enormous speculative frenzy" over the past year—would be like "catching a falling knife," former Morgan Stanley Asia Chairman Stephen Roach said Tuesday, just days after returning from a trip to China.
Chinese stocks were volatile again overnight, but closed well off session lows, as investors remained doubtful of the efficacy of Beijing's recent market rescue measures.
"The bubble is bursting" and predicting the bottom is anyone's guess, Roach told CNBC's "Squawk Box" in an interview. He added, however, that China's efforts to transform its economy remain unchanged.
The Shanghai composite rocketed more than 80 percent higher over the past 12 months. Since hitting a seven-year peak of 5,166.35 on June 12, the market there has fallen about 27 percent—triggered by a host of factors, including an unwinding of margin trading and concerns over lofty valuations.
Despite the recent rout, the Shanghai composite was still 15 percent higher for the year as of Tuesday's close.
(Excerpt) Read more at cnbc.com ...
One thing we do know is that Marxism had nothing to do with this worldwide collapse.
Pray America is waking
But marxism is not innocent either.
Ruh roh
2016 will prove to be a very interesting year. I predict a financial meltdown - worse than 2008. It will definitely have an impact on the presidential race.
With Obama in the White House as it happens, I can’t imagine the Democrats benefiting from it.
A communist nation that builds whole cities of skyscrapers in a year that no one lives in, is NOT A PLACE to invest your money in stocks.
Well the market bubble is about 45% bigger right now than it was in 2008.
/s
This is capitalism. There will always be bubbles and winners and losers. Let the bubble pop so it can reset and then people can invest again and ride the next wave. If gov’t tries to control the bubble and re-inflate things is when it gets really bad and it drags out the pain.
Pei Ping.
The China situation is like the lion you are not paying attention to, as the Greek gnat flies around your head.
Well said!
With Obama in the White House as it happens, I can’t imagine the Democrats benefiting from it.
...
Don’t underestimate the GOP’s ability to lose.
Bearing in mind, of course, that it was the government that created the bubble in the first place.
I’m waiting for China to just nationalize the businesses in trouble.
The sky is falling... lol
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