Lowering interest rates after a popping of a real estate bubble will have minimal effects. The Chinese are all in on real estate, they view it as their sole source of protection against inflation. You see, the Chinese stock market is rigged against the outsider, the insiders are so corrupt that they commit outright fraud or skim off huge chunks of profits into their pockets.
I would not be surprised to find out that Chinese government insiders loaded up on stocks earlier this week ahead of insider info on the coming rate cut news to dump for a profit tomorrow. It is that corrupt over there.
Europe has been the story up to now, China will be the story for the next year. It should have minimal effects on US small caps, but will affect the commodity producers and a few select large caps with large China exposure. Japan, Korea, and Taiwan will be the hardest hit.
I am expecting a gap and crap today, after the huge rally yesterday, but we will likely go up in the final hour of the day since no one wants to miss the overnight rallies or be caught short.
P.S. - I will make the blog invite only on Monday. If you sign up with a blogger account, I will add that email.
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9 comments:
been reading you for a long time! how do I sign up!
You need to register with blogger and send me the email address so I can add you to the list.
Is this what you mean by sign up ?
You need to send me an email so I can add your email address.
confirming I'm in?
now in?
now in?
Yes, I added you.
How do you reconcile your latest article with the Gold is the new wodow maker article?They can't both co-exist?
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