Monday, March 14, 2016

SMART PEOPLE

There are some smart people out there. We don't claim to be one of them.

Where is out there?  As one drives around the Internet, it's amazing just how many people are paying attention. We know, it's the worst nightmare of bureaucrats and politicians. But, Oh,Well! Here's just one example from dailyspeculations.com/wordpress/?p=10950
In the last four weeks U.S. equities have risen nicely. Some were lucky or good enough to forecast what happened (check their records). And there are some who are apprehensive about where the market is now. I cannot guess everyone's motive, but I believe more than a few of the hesitant are so because they fear a further bursting of the Chinese Bubble. However I present to you a brief phantasmagorical tour showing that the Chinese Bubble has already deflated.

In terms of three usable commodities (copper, wheat and cotton) the Shanghai Stock Exchange has mean-reverted to its price in mid-2014. If you are betting on a further Chinese decline, be cautious.

http://www.dailyspeculations.com/China_bubble_deflated.gif

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