Skip to comments.Chart Of The Day: Chinese Stocks Turn Red For The Year
Posted on 03/13/2013 6:47:03 AM PDT by pgkdan
There was much chatter by the punditry in the early part of 2013, when the Shanghai Composite appeared relentless in its surge, when it was tracking the S&P virtually tick for tick, hitting a 2013 high in mid-February, and which was "explained" to be the prima facie proof of the Chinese rebound. The reason said chatter has disappeared is that as of last night's close, the SHCOMP is now officially red for the year.
(Excerpt) Read more at zerohedge.com ...
Had to happen sooner or later, now the big question will be whether they intervene and how they do it.
Question is “When is the US market correction coming?”. We are due for one.
The only reason the stock market is doing so well right now is people are putting money there because banks and treasuries are giving squat in returns.
When the correction comes the big players with brains will be out and the mom and pops will watch their money disappear.
I am thinking the stock market is being driven by two things, 1) the Fed stimulus, and 2) those who are invested in 401K, IRA’s, etc, just let their fund managers handle their affairs.
The fund managers have no other place to put their money but in the market, and its not their money so its an easy decision for them. The amount of the average diversified portfolio that is held in cash I think is pretty small. No profit in cash. An account manager isn’t going to go out and find good value propery for you to buy. So the money goes back into stocks (their livelyhood).