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Chinese Stocks Are Now Up Over 100% Year-To-Date
Another day, another dip to be bought aggressively in China. The only catalyst for moar - aside from "well it was up yesterday" - is the news that the Shanghai-HK Stock Exchange aggregate quota will be abolished, leaving room for more speculative excess to flood into 500%-gainers. CSI-300 is now up almost 6% since Friday's close and Shenzhen and CHINEXT are soaring back from underperformance yesterday. To round things out on a superlative note, the Shenzhen Composite - which contains all the ponzi-based self-collateralized idiot-makers, is now up over 100% year-to-date. Simply put, you can't keep a bad market down...
Which has sent the Shenzhen Composite above the 100% return mark for 2015...
Charts: Bloomberg
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I make 100% a year off the Chi-Coms printing money! Learn Keynesian@Krony.com!
And leave your soul at the door ;-)
Secret for make plenty money in Chinese Stock Market:
Yuan mei king mo ni, mei bi yu bai xiea o fu chai ni zu kon pa ni... a wei gu rei ta fu lu!
I think your Chinese even has a Russian accent.
lol...its good to see Boris posting again.
If I'm not mistaken this puts the Shanghai Composite PE Ratio north of 50x PE. I keep hearing about how the Chinese are students of history and long term planners, but I am not seeing any evidence of that.
Yes, apparently China at the beginning of the 21st century is equivalent to Germany at the beginning of the 20th century.
Great analogy, that's not to say China won’t be a power to be reckoned with in the 21st, but the mistakes and blunders will be epic.
live in china and the vast majority of people here are total suckers. everyone knows everyone else cheats and somehow people still get cheated all day every day. even the very smart ones are total lemmings. if someone with a degree, a license, or any other designation given by whatever authority tells them something, they believe it as fact. end of story. really not surprising, it starts getting drilled into their heads at a young age. not saying the US is much better, but it's ridiculous over here. i try to do business hoenstly and some days i just want to say fuck it, you chinese sheeple want to be fleeced.
just as an example, some real estate developers over here will GUARANTEE a 25% net ROI. you read that correctly. i sell property that nets 6% in the states and people laugh at me because the "risk free" rate over here is 7%. i keep telling myself you would have to be a fucking moron to believe that as an investor/buyer but alas, the companies making such claims are killing it.
just wanted to elaborate a little more. if a company "guarantees" a 25% net ROI from rent, they will inflate the price by that 25+% above market when they sell it, use the cash from the higher sale price to pay the rent, and then in the fine print of the contract write "25% guaranteed in year 1".
Double!
Baltic Dry Index since 13 days every day down:
http://www.bloomberg.com/quote/BDIY:IND
[]\/[] [][] A R
Chinese reducing unemployment: porn cops and day trading housewives.
That's a respectable return. Big Hairy Pussy.
Certainly looks like a screaming buy to me. Wonder what Margin rates are ib Chine? Zero? Likely I would guess.
Ahh what to do when you can't sleep, have to get up early, and refuse to use google.........
Guess I'll do some research on bass fiddles.
(Thick Chinese accent)
"Gou Houme! Whyte trassshhh! Haa Haa HAA!"
"Bee a MAN!"
What could possible go Wrong.. the whole world is gonna be Rich.. Rich i tell you
no smoke allowed in this theater...
We're still short of the runup from last time. Got another 1100 points to go to get there, and this will probably top around 8000ish.
What you are witnessing right now, is a cross between self-defense and a game of winner-take-all chicken.
The US market is VASTLY overvalued due to the fed fuckery. it's due for an eventual crash, but the fed wont allow it. The valuation however must eventually be justified. Justification either comes from some great innovation, or a massive uptick in market share. It's happened before, the US holds out longer while others crash, allowing US companies come in to snap up assets on the cheap. It's happened to China, and it screwed over quite a few famous brands which were bought out to be shut down and allow for US brand market dominance.
China's not going to let that happen this time. The thing is, that China is just at the beginning of this stock market bubble. There is SO MUCH the government can do still. The US is out of ammo and waiting to fall. Again, Chinese stocks must also eventually either crash or justify valuations. If the US crashes first, Chinese companies, flush with cash are going to make a killing just at the time the government is trying to snap up foreign brands to act as shells for domestic exports to be taken more seriously and take the lion's share (rather than simple manufacture).
lol...
sort of agree tho
Its like a game of chicken (financial chicken) in a parallel surreal world with regular peoples lives hanging in the balance, being played by the elites in coordination with central governments. The only question is which printing press will overheat & lock up first.
Now in a sane world, people are routinely thrown in jail and the assets "bought" from the activity of counterfeiting are confiscated but not when its allowed/condoned by governments.
When criminality is made subjective, that is to say "the law" is distorted to allow the same activity (in this case, counterfeiting) to be judged differently depending on who is doing it, can anything really be a crime? ;-)
yes, it is a bit like a game of chicken. but I would not put such emphasis on "regular people" on one side and "elites in coordination with central governments"
besides clouding your judgment, it's fundamentally false. this conflict, as nearly all human conflict, is among elites, with "regular people" in the ranks of the cannon fodder as much as the enablers, the fans and the water carriers
laomei's picturing an interesting possibility, but it would involve one market crashing and the other being allowed to collect on bargain levels
I remember when the Japanese were buying up California, in the times of their Greatest Valuations. plenty of reasons were trotted out why markets would have to be closed to... "foreign"
they were not all necessary, yet it's another possibility in this game: one side wins all the Monopoly cash... and the other players leave the table and won't sell to the winner
It's dangerous for the US to play that game this time. With so much USD extended overseas and the US clinging to reserve status. In the end USD are nothing more than IOUs for US-sourced goods and services. THAT'S IT. Nothing more, nothing less.
leave the table and refuse to sell? china will be more than happy to ignore your IP entirely and sell copies around the world in all the growth markets. Go ahead and sue, China doesn't care, your company will crumble and die due to lack of enforcement. As those growth economies become more linked to China, US influence and "laws" become less relevent. After decades of pounding on doors demanding access to markets and demanding for sales of assets to US companies, turning around and blocking all sales... that's the end of American legitimacy right there. Allowing them to go through is also the end of an era, but at least it will be a slow managed decline rather than an abrupt "hard landing" in reality.
So about 3 months ago my Ex Chinese Girlfriend in China asks if she should buy stocks in China (she is a math teacher in the mainland).
I told her no that a bubble is forming and you will not know when to get out and you will likely lose money. She buys and yesterday she tells me she is down 1500 in USD terms. She invested about 5000 USD.
Her text exemplifies the human nature b/c she said she is very confident she will get her money back.
I told her many times that she should just buy silver coins on a monthly basis and dollar cost average... we see how that went.
let's check back in 6 months and see if silver or the SSE is up more ....probably her time horizon... i don't think she cares if silver coins do better by 2050.
your girlfriend must be a special kind of dumb to be down 30% while the broad index is up
and you telling her not to buy 3 month ago at the start of the run also makes you the worst timing advice-giver ever, had she bought 3 months back instead of now she'd have made money and then got out even if it was a complete bubble.
Just because she lost money when the broad index is up does not mean anything at all.
There are many losers even when the broad index goes up, much like there are many winners when the broad index goes down.
Losing 30% is much better than losing 35% or 50% or 75% or everything.
Nah. I bought a shitload of Hangseng after the 2009 crash. Decade market lows... that was almost 6 years ago. Most of those stocks are still down 50~70%. Can you imagine? 2 years ago they were down to almost zero. I basically wrote them off and have just been ignoring them. It's actually all this ZH hysteria that had me login to my account again and see how things were going that I had a good chuckle. Sure, they're up a bit. Nowhere near where they used to be.
And that was buying off the lows mind you. I know so many people who took a bath on the Hangseng in 2008/9.... lmao.
The index is up, the overall market is up, but most stocks are nowhere near their previous peak. Not even close.
^^^this, still wondering if we will see those Japanese highs again...
that's hongkie shit though, HK is increasingly irrelevant. the boom has been in the domestic markets.
Infinite fiat and mad bankers. Something doesn't seem right. People aren't making sense. They are acting dangerously without knowing what they are doing.
Afraid now.
potential china sell-signal:
Gartman: China's bull market just getting started
http://www.cnbc.com/id/102699519?trknav=homestack:topnews:11
These aren't to be considered stocks, but rather funding for future endeavors
May the best "market" win
Chinese State Paper Warns "War Will Be Inevitable" Unless U.S. Stops Meddling In Territorial Dispute
The U.S. stock markets are on the verge of major collapse. The Dow Jones Industrials and the Transports are diverging, a Dow Theory indication that a reversal is near.
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
Here's where the Dow is headed...
http://www.globaldeflationnews.com/dow-jones-industrial-averageelliott-w...
Yep, the US markets should have collapsed a long fucking time ago. The fed is kicking the can down the road and warping everything. Technicals no longer mean anything as the fed has more or less decided that the stock market is the economy and they have a mandate to stabilize the economy... ergo ipso facto, they have a mandate to manipulate the stock market. This shit never ends well. It's schrodinger's bomb at this point. The fuse was lit, you know the bomb will go off, but when? Everyone fucking knows it's coming.
The China market.. stocks are just getting started. To put this in perspective, in Beijing alone, the average person in the last 2 months has seen a gain of ~80,000 RMB or about $13k. Everyone's in on it to varying degrees, but no one's "all-in", it's still just play money. The financial markets here are very immature, nothing is really financialized to any serious degree either.
Stocks here can move up or down 10% per day and are then suspended and daytrading doesn't exist, nor does HFT.
Stock market bubber about to pop !
What can I say? All that money from stock buybacks had to go somewhere.