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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 414.48+0.7%Jan 9 4:00 PM EST

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From: 2MAR$8/28/2012 4:12:57 AM
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China's lost Decade
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China's Lost Decade

Monday, August 27, 2012 at 02:48PM
China's stock market started out the week on a sour note with the Shanghai Composite suffering yet another breakdown. As shown below, it looked as if the index may have been forming a short-term double bottom, but the double bottom failed today with another big move lower through support.



Chinese stocks have struggled for years now after they went parabolic for a brief period in 2006 and 2007. The Shanghai Composite is now down 66% from its all-time high in October 2007 and 41% from its post-bubble high reached in August 2009. The Shanghai Composite is now trading at the same level it was trading in mid-2001. What was an exploding emerging market a few years ago has now turned into yet another "lost decade" story.

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