The Shanghai is down 17% from its high and...

M

michaelscott

Agree or Disagree: The Shanghai is down 17% from its high, it may tank further and this will have no effect on the Chinese economy, the world stock markets or any other economy outside of China.

I know someone from China who was just on the phone with their mother. Apparently most people had taken their savings and threw it in the market.

Many of you remember the painful lessons of 2000 and there was a huge destruction of wealth. I believe the same lessons will be learned in China and the end result will be negative.
 
Remember the 20% rule?

They'll be fine. To many of them to get depressed about. Most of them are still living in rural areas, when industrialization is finished then we can worry about their economy.

Why are we worrying about their economy if ours is doing much worse???
 
Quote from michaelscott:

Agree or Disagree: The Shanghai is down 17% from its high, it may tank further and this will have no effect on the Chinese economy, the world stock markets or any other economy outside of China.

I know someone from China who was just on the phone with their mother. Apparently most people had taken their savings and threw it in the market.

Many of you remember the painful lessons of 2000 and there was a huge destruction of wealth. I believe the same lessons will be learned in China and the end result will be negative.
More...

Things go up and things go down what is important is can you profit by it?
 
Quote from rateesquad:

Remember the 20% rule?

They'll be fine. To many of them to get depressed about. Most of them are still living in rural areas, when industrialization is finished then we can worry about their economy.

Why are we worrying about their economy if ours is doing much worse???
More...

no.

please post the rule.
 
LOL. I was joking but the rule states something in this nature. If an underlined security has pulled back from an all time high by as much as 20+% , then it is in downtrend.

Not my rule, I was just joking. I guess it work for fortunate few.
 
Indeed...if it's 17% from its "all time high" then the only ones who are getting hurt badly are those who, like others, got in towards the end of the run...

...unless it retraces and breaks through said high....
 
the chinese markets retrace 20% and then work themselves up.. the key is what happens after the 20% decline whether another 20% is in store. Historically after the initial 20%, the correction was over.
 
read maoxian.com for info on the markets from someone who's actually in china.

search for manicurist, i think.
 
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