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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (139213)	2/11/2018 7:39:17 PM
From: Elroy Jetson	Respond to of 218806

When people are optimistic they most optimistic about higher risk and reward emerging economies, including China. When there's suddenly uncertainty about global growth, it's the emerging economies which take the biggest whacks. We've seen this perhaps ten times so far and it will continue cyclically. As the Chinese economy matures over the next hundred years the sudden panicked capital outflows from China will be less severe - unless something doesn't play out according to long-term plan. But for now it reacts like the Russian or Indian markets as the local domestic capital market is immature, the US or Europe sneezes and the Chinese and Russian markets get pneumonia (it's a buying opportunity). With the wealthy of China wanting to invest at least a big chunk of their capital outside China, the Chinese government has to limit this urge to maintain a stable currency. This process will continue for another couple of generations - something like a hundred years - just as it occurred in America's first 150 years as a new economy.