Chinese stock market near crash status 2008 repeat

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Considering it is costing the Chinese gov't BILLIONS to "prop it up" it seems like more is going on than that even though our flagging economy doesn't help.

If the Chinese market crashes you will see a repeat of 2008, only much worse according to some.
 
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Originally Posted By: Warstud
U.S. Stock Futures
Dow -205.00
S&P -25.75
Nasdaq -58.75



What's insane is that the global market and financial system (the people that lead it) never learn and keep doing the same [censored] things every single time.

Although for those of us that are responsible it means cheaper goods for a while, and a fire sale on real estate and vehicles. Look at for the foreclosure officers, and repo men to visit a nice neighborhood near you soon!
 
This is so disturbing. If that market crashes it will cause many dominoes to fall around the world.

The Greece vote is also worrisome. It will be interesting to see what comes of their decision.
 
The Chinese market is so overblown it needs to correct. Same with the NYSE. 2/3 of my money is in fixed mortgage real estate.
 
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Never been a fan of the euro, so watching Greece give them the finger is interesting...and I expect other failing countries to be watching here as well.

Between China and the euro issues, suddenly being global is not the greatest idea either.

Tough to say where things will go.....
 
Originally Posted By: Doog
The Chinese market is so overblown it needs to correct. Same with the NYSE. 2/3 of my money is in fixed mortgage real estate.



Gee a bunch of doom an gloom here...
 
I think I'll chalk this under "near term volatility" vs. "the sky is falling". The US market is fully priced but I wouldn't exactly call it overblown. Stocks are selling for only slightly more than the median P/E ratio of the last 60 years. It wouldn't be anything out of the norm to have a 5-10% correction. Whether some form of "contagion" takes hold is yet to be seen but it seems China is adjusting to not having their economy grow by 15% every year. In my mind, decent earnings and low interest rates will still have the market pushing forward for awhile.
 
The Chinese will have to start consuming what they have been making. Nobody but the Chinese can save them.
I hope they let Greeks print their own money out of this servitude but it is unlikely. Especially after the way the Greek premier put it... Shave 30% of debt and extend 20 yr grace period. Or maybe all is bargaining chips...
 
Originally Posted By: philipp10
Originally Posted By: Doog
The Chinese market is so overblown it needs to correct. Same with the NYSE. 2/3 of my money is in fixed mortgage real estate.



Gee a bunch of doom an gloom here...


Some people call it coping with the current reality.
 
Originally Posted By: Smokescreen
Originally Posted By: philipp10
Originally Posted By: Doog
The Chinese market is so overblown it needs to correct. Same with the NYSE. 2/3 of my money is in fixed mortgage real estate.



Gee a bunch of doom an gloom here...


Some people call it coping with the current reality.


No doom and gloom. The Chinese market was up 150% in the past 12 months. No market can sustain that without a correction. The average household in China has under 10% exposure.No big deal. HOWEVER, the communist government is afraid of the political and social fallout if they are unable to "control" the investment market that they "created".
So they are pumping cash into it like firefighters pump water into a burning oil refinery.

The government officials are afraid that they will be seen as no longer "relevant" or necessary.
 
Originally Posted By: GiveMeAVowel
Considering it is costing the Chinese gov't BILLIONS to "prop it up" it seems like more is going on than that even though our flagging economy doesn't help.

If the Chinese market crashes you will see a repeat of 2008, only much worse according to some.


Nope, a correction is healthy in the big picture...China is just not used to the idea. They tout China as the best country to invest in. Now the air is leaking out of that balloon. The "BILLIONS" that they are pumping into it don't put much of a dent into a market that has over a trillion yuan turnover daily.

Just remember if they lose 1/2 of their last years growth...they are still up 75% for the year.
 
Originally Posted By: Vuflanovsky
I think I'll chalk this under "near term volatility" vs. "the sky is falling". The US market is fully priced but I wouldn't exactly call it overblown. Stocks are selling for only slightly more than the median P/E ratio of the last 60 years. It wouldn't be anything out of the norm to have a 5-10% correction. Whether some form of "contagion" takes hold is yet to be seen but it seems China is adjusting to not having their economy grow by 15% every year. In my mind, decent earnings and low interest rates will still have the market pushing forward for awhile.


We are due for a correction. My guess is 10-20%. But I am past age 60 so I have much less stock exposure.
 
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Chine is due for a correction, you can't have constant off the chart growth.

Greece is so small no one cars, same as PR. $70 and $300 billion is chump change in terms of the global economy.

Greece only matters because they are giving the middle finger to the EU so it will be interesting to watch it play out.
 
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