Greetings from Manila, Philippines.
The Shanghai Index has traded as expected over the past six months, falling “frighteningly” to a low just to test our convictions, then powering up again beyond reason, only now to settle in the middle.
What does it all mean?
Over the past five years, as the global financial crisis unfolded, the reliance on China has been key to the world’s recovery. The question is, how key will it remain in the future? A significant transference of “real wealth” has already happened from West to East over the past five years. Will the emphasis shift back to the West sometime soon?