In his view the market would "succeed" if it would always go up? Strategist? Seriously?
>> ...failed to revive confidence among stock investors...
Depends on which side of trade you are. Investors who are put holders are not complaining ...
No, I think the Chinese genuinely believed the stock market would channel the excess savings that households have into private and public companies in a controlled manner. There is a genuine mismatch, the households save more than 30% with no place to invest while the corporate sector is burdened with debt thanks to overgenerous lending after the financial crisis.
What was supposed to be a gradual 15-20 year stock rise and conversion of debt into equity has become a boom and bust in a year or so. It also looks like a lot of small time investors piled on at the peak and might be looking at large losses. So kind of sucks for the small time Chinese investor who was looking for some growth (since they cannot invest anywhere else - property is already bust)
Next I hear it, it's on TechCrunch. Then on HuffPo.
I almost bought 10 coins at $500/coin.
By the time it hit NYT, it was $1k/coin
We all know how that story played out. Still kick myself for not buying like 10,000 of them at $1 though
So what the Chinese are proposing is not exactly an investment, it is a transfer of debt from companies to individuals. Anyway, doesn't seem like an idea that would work -- investing in failing companies is a recipe for disaster.