There is a great debate raging between students of monetary economics. On the one hand, there are the deflationists who point to the massive deleveraging in the housing, mortgage, credit and stock markets. The fall in prices in these asset…
China’s strategic stockpiling and replacement of lower-quality domestic production with higher-quality imports have supported the recent rally in prices for many base metals, but we will not see a sustainable turnaround in demand until the major economies of the U.S.,…
China bought less than a sixth of the Treasuries issued in the 12 months through March. Less than two years ago, by contrast, Chinese purchases of Treasuries, which included purchases in the secondary market as well as newly issued securities,…
The Wall Street Journal ran an interesting front page article this weekend on the Chinese stock market, “China Stocks, Once Frothy, Fall By Half In Six Months” (subscription required). The chart tells the story: Shanghai Index Chart. It was obvious…
For all of you geting swept up in the euphoria over all these speculative Chinese stocks, forget about it. I have a better alternative for you: Yum! Brands (YUM) (website). Yum is the operator of Taco Bell, Pizza Hut and…
On the heels of last Wednesday’s 282 point, 6.5%, sell-off in China there was another selloff in China last night (Monday June 4). The Shanghai Index was down 330 points, or 8.26% – comparable the 269 point, 8.85%, sellof heard…
Ever since the huge selloff in China on Tuesday February 27 which sent stock markets around the world crashing down, investors everywhere have been watching the Chinese stock market. There was a second selloff on Thursday April 19 (subscription required) as…
If this chart doesn’t scream “Sell China” I don’t know what does. That chart looks to me like it’s about to curl around and head back in time while going up at the same time. Some trick that would be!!!! …
Today was one of those days that causes people to sell all their stocks and swear off the stock market forever. It was the worst day for the market since the re-opening after the Sept 11, 2001 terrorist attacks. At 3:00pm…