I have been warning against the Chinese stock market participation since the beginning of this year. You know its time to get out when street vendors and day trading grandmothers begin to day trade in their millions.
Shanghai Stock Composite is down close to 20% over the last few weeks. Down over 7% just today. Plus, the chart above looks eerily similar to the Nasdaq chart in March of 2000. Even the index print is the same. And while we are likely to have a bounce, this Chinese speculative bubble might be popping in front of our eyes.
If you believe the same thing cannon happen here, you would be wrong. Arguably, the US Equity markets are even in the bigger bubble. Overall. It’s just that we got there in a mush slower and gradual way. Yet, there is no reason to believe the decline will gradual as well. When bubbles pop, they tend to go fast.
Can The Chinese Market Crash Repeat Itself In The US Equity Markets? Google