As for the Chinese stock market, it is far less sensitive to a lot of the global market dynamics than a lot of people realize. It's heavily driven by domestic macro policy and money supply, albeit global trade movements do have some impact on sentiment.
Both China and Russia will be the ones to watch in the coming days. I personally, think that we might be headed for a large scale global downturn. The "recovery" never made it to the people whose backs the country is founded on so it all had to come crashing down eventually.
So you are saying that this is all premeditated from their side eh? I would not be surprised, more, their alliance with Russia has something to do with this as well, for sure.
It's just that their system is different. One one hand, the government basically controls everything and can take it away if they choose to. But on the other hand there is a strong capitalist component to the country that has little actual day to day oversight. There's child labor, very low pay, poor products, little or no oversight of accounting / financial controls and reporting, etc. What this means to me is that if I own lots of google, I own far less of its Chinese counterpart Baidu. If I own some Amazon, I own just a little of its Chinese counterpart Alibaba. I lost thousands on Northeast China petro when they went bankrupt after it was discovered that they were cooking the books. It looked great on paper, and they even had a strategic partnership with Petro China. But they were fraudsters. I'm glad I only invested a few grand and not tens of thousands like I had initially considered. 21vianet is another one I had a few bucks in that also had some "irregularities". I actually got out of that one with a bit of a profit after having owned it a couple of years. US companies can also cook the books, but it happens far less here and is usually caught quicker because of our stricter guidelines on these things. I'm as capitalist as they come, but there does need to be SOME oversight to keep companies honest and maintain acceptable quality standards.
Really? Funny how that works in the American market isn't it? It seems we are hard pressed to believe it is true even if it is. Regardless by the time we know about it, chances are to late and the damage is done. I think what concerns me now more so then the market is what is going on in the IRS. There are so many un answered questions and so many revisions in the tax code that it is hard to tell what exactly is what anymore. Corporate America is in the exact same boat as the little guy, it is as if we are all sailing through some crazy legislative fog with no idea if there is an iceberg ahead or clear sailing. It's nice to think that things have to get better, no matter what things have to change. Sometimes that change is to something so foreign we cannot even begin to comprehend how that will or could effect us in the long term. I for one want to wait for all the dust to settle before I get aggressive in investing again. Can't see a damn thing right now in the speculative sense, going for the more tried and true long term investments.
The IRS is obviously corrupt and in bed with the current admin. One example of a company here that had "irregularities" is Ebix software. I first bought a little of it years ago because it looked like a good investment. When something came out about a minor infraction committed by one of their employees, I bought quite a bit more when the stock seemed to overreact to the downside. The stock shot back up and continued going up, making me a big profit. Then something else surfaced about "accounting irregularities", and I got out right away. The stock then dove hard once again. Hertz also had some issues, but they seemed to have cleared them up. Carl Icahn is a big shareholder, and he got rid of the old CEO and put in several new board members. I think Hertz has some good days ahead.
The truth is that things always run in cycles. America has been stugling to make an economic come back for quite some time. Since Bill Clinton left office the economy has been on the skids. We are only now starting to make a come back. I say we give credit where it's due. The current administration seems to be guiding the economy very responsibly. Time will tell, and history will be the best judge.
Corruption runs in cycles is that what you both mean? Sadly, that is true, everything is manipulated according to the wishes of the big lords of power and we just do our best to survive.
I disagree somewhat. Clinton was much different from Obama - he was willing to work with the other side and wasn't a rigid ideologue or emperor wannabe. But it was mainly the real estate and dotcom bubbles that made life so great for so many years during the 90's and before '08. Things were very good for the most part up until '08. What you're largely seeing nowadays is fed intervention and an energy boom. Taxes and regulations have gone up considerably, and Obama is obviously anti-fossil fuels, despite his willingness to take credit for the success of private oil and gas companies on private lands. He's a socialist who is backed by the climate change / alt energy interests and is obsessed with "inequality", "fairness", "social justice", etc. He's anti-business if anything.
The correction is that most things made by chinesse companies are garbage. Companies like Walmart and Apple demand quality because they are quick to replace a poor quality supplier. What you do not want to buy is something directly from a company in China.
