Monday, July 13, 2015

How Much Lower Can China Go?

Much much much much lower.


As "cheap" as I think the China markets are, it isn't really a "market" if people aren't allowed to sell.

The amount of margin debt is extremely staggering. Until all those farmers go back to work the fields, you can rest assure that it is going to keep on slumping lower and lower and lower and maybe close indefinitely.

I still think the long term prospects of China is pretty good, but their crash is far from over in my opinion. The system needs a good flushing out, and while it might be much more obvious in China, there are like many other systems that need a good flushing as well.

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