Does the Chinese stock market presage the U.S. market's direction? If so, the U.S. market is set for a fall. The economies of China and the U.S. are in effect Siamese Twins, joined at the hip. By pegging their currency to the U.S. dollar, the Chinese central government has tethered its economy to both U.S. policy and the U.S. economy. Since the U.S. economy is still considerably larger than China's, and the yuan/renminbi is pegged to the dollar (and not vice versa), then we might expect China's stock market to follow the American market's lead. As expected, the two markets...
