The beginning of the end

China stock indices tumbled by over 6% today and I had three phone calls from Business News Channels in India within ten minutes of each other, to speak to them on it, especially since I had written about the bubble, among other things, on Tuesday in my MINT column (nice timing).

A sloppily blog post here:

(1) “Policy support, both from the government and PBOC, is underpinning the rally”

They are not two separate entities – but one.

(2) “When making your own assessment on whether or not it can continue just ask yourself this one simple question: Do you know anyone who made money betting against the Fed, ECB or BOJ in the past six years?”

This is so disappointing because markets can remain irrational longer than we can remain solvent but that does not elevate it to the level of an investment strategy.

This is a better one.

Interesting that India’s Sensex Index dropped ‘only’ 57 points on the day. Good augury.


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