Wealth Creation Through Natural Resources
Last week we highlighted the 3200-3400 area in the Shanghai Composite as a likely support zone from which a dead-cat bounce could begin and that is exactly what has transpired over the last few days: The rebound has … Continued
Whatever is happening in China right now surely doesn’t bode well for the long term stability of China’s domestic stock market (Shanghai Composite). Retail investors have been piling on the margin debt in order to increase their bets on increasingly … Continued
It’s been a long time since i’ve seen such an abundance of yellow/red flag warning signs out there. At this moment I would be remiss if I did not point out all the warning signs i’m seeing: M&A activity during the … Continued
Here are some stats on the Shanghai Composite: +49% year-to-date +143% in the last year Up 5 consecutive trading sessions Investor margin debt has more than doubled in the last year Shanghai Composite (Daily) Shanghai Composite (Weekly) … Continued
The following chart tells a timeless tale of investor psychology: As equity prices trend higher investors are willing to take more risk, however, at the first sign of a market downturn investors are quick to liquidate positions and exit … Continued