While the US papers tout China as the next economic superpower, and venture capitalists scramble to set up their China investment arms, Chinese financial stocks peaked in January and have been weakening quite dramatically. The China Fund has fallen 44% since then. The Economist has been reporting on when the Chinese government would try to stem the growth of its economy and prevent their economy from bursting at the seams. China has finally acted by raising rates and taking other steps to slow investment. Now the Elliott Wave Financial Forecast lays out the case that the attempt to stem the tide will instead burst the bubble, just as the Fed raising rates to stop 'excessive investment' in 1929 or 'irrational exuberance' in 2000, and the Japanese acting similarly in 1989, stemmed more than they had expected. Watch this story play out over the summer and into the fall. A confluence of forces is pointing towards the September timeframe for this optimism over this Bubble Echo to fully burst as well.
Comments
You can follow this conversation by subscribing to the comment feed for this post.