High Heeled Traders

Unbreakable China

January 8, 2016

Yesterday I said, the Chinese government would have to step in and support the stockmarket. Which it did today. And markets see-sawed some more but at the end it rallied to a close. So, is the crisis over? Maybe, it’s just a break? Hmmm,,, a lot of notable investors like George Soros and Mark Mobius have been saying this smells like a crisis and sure I would agree on some parts, but to say this will be a full-on crisis year, I don’t think so. The governments are not supposed to let that happen, or they risk getting thrown out, and China, is well, China. Let’s just say they still have lots of means to manage this “disturbance” as pointed out by Mohamed El-Arian in his article. They have money to spend for such rescues and they are working through policy fairly quickly.

So how’s the outlook next week – let’s go through a checklist.
stock market crash – done
currency market crash – done
oil market crash – done

They said there might still be after-shocks but after those “big events” already happened, and US corporate earnings rolling in, I think there’s a good chance we can have a rest from all the drama.

It seems like everything else, crisis and calm is made in China.


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