When China’s stock market collapses, where will the money flow? Will the Dow Jones benefit?
The Chinese have gone heavy into real estate as well as foreign asset development. A lot of liquidity has left the markets and the in come stream is not there either
If govs stop printing the stuff, I wonder how much money will be invested in anything. When a market collapses, the first out get money. The money of everyone who doesn't get out in time evaporates.
Look at the futures. Not today.
A lot of this is margin debt that is being wiped out, requiring the sale of assets to cover the losses.
Rationality returns ... lots of margin debt ,, much of it illegally authorized by brokerages to accountholders that didn’t meet requirements and beyond the 2:1 ratio limit imposed by the Chinese Gov’t. This will NOT benefit any other markets.. many will be wiped out.. if you have liquid funds I’d short Chinese companies on US exchanges because this is far from over... Next comes a Chinese Real Estate crash and commodity prices will continue down... especially industrial metals.