At the start of the week I said a bounce would arrive in a few days; it came on Wednesday by close and Thursday by intraday.
This is a truly amazing analog when you consider China's massive intervention compared to the U.S.'s relatively hands off approach in the early 2000s. Two very different approaches to bursting bubbles and yet very similar performance in the first two months post peak. According to socionomic theory, the Chinese authorities are as much prone mood as the average investor. In other words, they intervene at the same moments that the mood in a free market would also "intervene" with contrarian, value and short-covering buying. Chinese authorities and average investors think "now is a good time to buy" because both are being affected by mood in a highly emotional market.
Lumbering Giant
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FEEDI heard a fellow on the radio singing the praises of the U.S. growing
at a blistering 1.6% rate. I guess any news is good news in an election
year, right?
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