By Richard Russell
The Chinese market did what I thought the US market would do - it had a big blow-off on the upside and then reversed into a violent bear market. At the low, the Shanghai stock exchange was down over 30% and Chinese investors were thrown into a panic. When the planet’s second largest economy is in a bear market, it’s serious.
What I am worried about is the strong possibility that China is dealing with a primary bear market. If so, no amount of government interference will turn the tide to bullish. What I am also afraid of is that China’s sickness will be contagious and the US will catch the disease.
The Chinese have been instituting all sorts of gimmicks in an effort to halt their stock market decline. For instance, anyone who owns 5% of a stock is not allowed to sell that stock. Happily, the Chinese authorities have been ... Log in or subscribe to continue reading.