China’s stock market has been rising quickly, and displaying the signs of irrational exuberance. The housing market stalled earlier, but stocks continued to rise. GDP is still strong, but has finally backed off from its extraordinary levels. Within the last few weeks though, the stock market has fallen quickly and far, down about 19%. The arbitrary benchmark for a bear market is a drop of 20%, but indications are that the drop isn’t over.
Tech stocks in ChiNext are trading at sky high levels, which reminds me of the bubble we had in Western markets 15 years ago. – Hertta Alava, FIM Asset Management Ltd
When the western bubble popped, it took years to recover. Now, China is a major influence of the world’s economy; and one proof of that will be how the world responds to a market upset there.
(Click on the photo for the link.)
“Emerging Markets Drop On China As Greece Talks Remain Deadlocked” – Bloomberg
