Chinese Stock Market Crash

I first started blogging on ideas relating to economics, finance, investments and housing following an invitation from Business Spectator Please note that I may have an economic interest in any of the items discussed here. Another argument was posted on Forbes Will There Be A Financial Crisis in 2017 in which the author argues that there has beenĀ a financial crisis in the seventh year in three of the last four decades: 1987, 1997, 2007. By the late 1970s the world’s linked market economies had built themselves up to a point of tremendous surplus.Stock Market Crash

Well, sure these guys can be right, and if you keep calling a stock market crash every month, for years on end, you are virtually going to have to be right one day. Investors ploughed a net $17.8 billion this year into eight Asian stock markets outside Japan, according Bloomberg data.

Expect a temporary bubble in 2012 driving prices higher than the most recent 12,800 market high, possibly setting a new all time high in what will be an obviously unhealthy, somewhat uneasy irrational 1929-like blowoff, followed by an equally unnatural 2013+ relentless collapse to at or about Dow 1,500 (probably a 5 year+ outlook).Stock Market Crash

In order to get a comprehensive understanding of the market, it was necessary for me to consider many other market barometers and invent a few of my own. Its been accurate in the past, and my thoughts are it will be accurate in the future too, and that is why this is one of our tools we use every day on the market. They were called Hooverville’s after President Herbert Hoover who took office in 1929 as the world economy collapsed. We are told, over and over, that the free market is a sort of natural wonder that guides the economy without need for government interference. The market continued to soar during 1928 and much of 1929, with these twenty-five leading industrial stocks reaching the 452 point mark in early September 1929, almost doubling the stocks’ selling price in less than two years.

Now, I want to call your attention to the performance of the ^SP600 small-cap stocks: (1) This index was a strong relative performer since the bottom of the market was made in February-March because it was probably manipulated higher by the high frequency traders such as Goldman Sacks and other major traders, with Citadel being the biggest of them all.Stock Market Crash