Posted on 08/18/2015 3:19:06 AM PDT by blam
David Scutt, Business Insider Australia
August 17, 2015
The slumber in China’s stock market came to an abrupt end this afternoon with markets plunging into the close.
The benchmark Shanghai Composite index finished down 6.12% at 3,749.1 points, its largest percentage decline since July 27.
Providing an indication of the price action seen in recent months, the fall was only the sixth-largest percentage decline so far in 2015.
Over the past 12 months the index is still up by 67%.
All sectors finished deep in the red with telecommunications, IT, industrials, materials, consumer cyclicals and utilities all falling by more than 7%. Energy and financials were spared the worst of the declines, sliding by 2.38% and 3.81% respectively.
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(Excerpt) Read more at businessinsider.com ...
stock market does not equal economy
China stock market is in a bubble at moment just like the US stock market
[stock market does not equal economy]
(Our)stock market does not equal economy
China’s may be more geared to China’s real economy.
How many stock markets rise 67% in a year without falling back about half of that? Developing market markets are of course more volatile than most.
No, in China the fledgling Chicaps are learning the hard way that markets fluctuate and that gambling on the come can be dangerous
Perhaps the correct thought is panic when all confidence is lost and the only thought becomes sell, sell, sell
The problem was that China’s stock markets essentially experienced what happened to the US stock market in the late 1920’s—but compressed into the time frame of less than half a year.
Interesting, to say the least.
Love your home page. Fine looking crew you got there.
I am of the opinion that the correction needs to run about -40% to -55%. Way too rapid of a run up in the past two years. It is a classic case of too much money chasing too few stocks.
Thanks. All are rescued except for the German Shephard.
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