This bull mkt ends with China's bubble

China is reminiscent of the Internet Bubble.
It can go on and on and on and on some more but sooner or later watch out. Don't try and pick the top, you won't, you'll get burned along the ride up and you won't need to. It will pop but it may be months even years away.
These commies :D are going to learn a hard lesson about free market capitalism when this bubble pop.
 
The Dow used to trade at 80.

Quote from JamesVU2000:

There is no way that Chinese equities can continue at the current pace. If they do the index would be around 18000 in a year .
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The bubble pops when the Fed says so.

When China sees big price inflation on output, thats the signal.

Commodities are extremely high now and going higher.

This does not help raw material processors (overseas manufacturers).

Exports have little to do with it.

America is the worlds economic engine. Our massive inflationary printing is offset - to a great extent - by cheap overseas imports.

When that card is played, its pretty much done.
 
China's advantage in its low cost labor force is gradually fading away, there is rampant inflation in China and rising wages are going to have to passed on by corporations in the form of higher costs for finished goods.

Inflation in things that we need (oil, food, metals) has been roaring for the past few years But inflation in things that we want has been relatively low due to the disinflationary effect of China. Well that's disinflationary effect is disappearing. That's going to put inflationary pressures on manufactured goods which we'll see in the next few years.

The Fed, unless its totally irresponsible, will have to raise rates in that environment even with a stagnant economy that I forsee. A definite double whammy for stocks and bonds.
 
Quote from makloda:

Just curious, how's the average winner ratio of your weekly bearish calls?

I remember you frantically begged longs to get out before we "crash much further" at the exact low of the spooz @ 1370.
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I guess you have nothing better to do than stalk me from post to post. I don't bother to keep track of your posts, they are a bunch of snide remarks at others with little original content. If that's what you enjoy doing, go right ahead.
 
Quote from gkishot:

And nasdaq used to trade at 400 in the early 90s before shooting to 5000 in less than decade.
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Please................... Past history is NOT a guarantee of future results. Its easy and simple for those that don't do their homework to consider China as US part deux but there are huge differences in the time scales and period of the world that we are in now. Back then, equities weren't the staple they are now all over the world. Equities were hated back then. Absolutely hated.
 
Funny.... Have you guys visited China lately? Investment money is well absorbed there... this isn't a bubble... it's an awakening of a sleeping giant...
 
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