Jim Stack on Shanghai: “This is not going to end well!”

Yeah, that’s lookin a bit toppy . . .

Shanghai

>

Investech’s Jim Stack had a terrific call last month, reiterated on June 1st:  Sell China.

“We DO want to issue a formal warning about the Chinese stock market and Shanghai Index. This market has entered a speculative frenzy, with more new Chinese trading accounts opened on Tuesday of this week than in an entire month last year! The government is clamping down on the speculation, and has raised interest rates for the 2nd time in barely two months. We suspect the pinhole will go into the Shanghai market’s parabolic rise in the very near future. If you own Chinese stocks through ADR’s or China-dominated mutual funds, we urge you to take profits now.”
-InvesTech Hotline Report – May 18, 2007

I agree with what Jim calls "Bubble Dynamics:" Once created, bubbles do not deflate gradually – they pop with quite the mess for those investors who have been participating. Fortunately, China’s stock markets are not nearly as integrated into their society as ours, so a correction in their markets are much less likely to impact consumer spending and sentiment. 

>

Stock_market_china_syndrome

Category: Investing, Markets, Psychology

Housing Inventory Build Worsens

Category: Data Analysis, Economy, Real Estate

Bob Dylan Wrote Every Pop Hit of the Past 35 Years

Category: Digital Media, Music

The NYC Profit Calculator

Category: Consumer Spending, Corporate Management, Earnings, Economy

Holy $#@& !

Category: Digital Media, Web/Tech

Rising Bond Yields (or, The Magazine Cover Indicator Lives!)

Category: Economy, Federal Reserve, Fixed Income/Interest Rates, Psychology

Tivo HD = $400

Category: Digital Media, Film, Television

Read it here first: Borrowing FICO Scores

Category: Credit, Economy, Financial Press, Real Estate

More on NiLF & the Unemployment Rate

Category: Data Analysis, Economy, Employment, Federal Reserve

June Linkfest, part II

Category: Weblogs