This bull mkt ends with China's bubble

gkishot · Sep 24, 2007

Quote from detective:

China's not the bubble, the Chinese stock market is the bubble.

Really, what's it's P/E ratio? PEG?

detective · Sep 25, 2007

The P/E for the Shanghai index is about 60, I don't know what the PEG is. But I know earnings growth is NOT 60% a year for that index.

ConsiderThis1 · Sep 25, 2007

Quote from Tracy McGreedy:

The Dow used to trade at 80.

lol
that was fun to read.

My Gawd I hope I get the equity from my condo back so I can trade again.

gkishot · Sep 25, 2007

Quote from detective:

The P/E for the Shanghai index is about 60, I don't know what the PEG is. But I know earnings growth is NOT 60% a year for that index.

http://seekingalpha.com/article/35031-is-the-chinese-market-overvalued

makloda · Sep 25, 2007

Quote from detective:
The P/E for the Shanghai index is about 60, I don't know what the PEG is. But I know earnings growth is NOT 60% a year for that index.

Quote from gkishot:
http://seekingalpha.com/article/35031-is-the-chinese-market-overvalued

achilles28 · Sep 25, 2007

Quote from detective:

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.

The Yuan/Dollar peg is another point of interest to watch.

ConsiderThis1 · Sep 25, 2007

Quote from achilles28:

The Yuan/Dollar peg is another point of interest to watch.

When a CEO in the US is paid $600,000,000, is that cost passed on to consumers?

That same $600,000,000 could be divided up among 60,000 workers with each of them getting an extra $10,000 a year.

What is the difference between the $600,000,000 going to the CEO and going to the workers under the CEO?

S2007S · Sep 25, 2007

Market is crazy, last 5 minutes everything being bought, crazy............

stock_trad3r · Sep 25, 2007

no buy buy buy ?

achilles28 · Sep 25, 2007

Quote from ConsiderThis1:

When a CEO in the US is paid $600,000,000, is that cost passed on to consumers?

That same $600,000,000 could be divided up among 60,000 workers with each of them getting an extra $10,000 a year.

What is the difference between the $600,000,000 going to the CEO and going to the workers under the CEO?

America gets the money and China doesn't.

Thats akin to putting on a band-aid after our left hand has been hacked off.