Switzer on Saturday

It’s China, China, China!

Founder and Publisher of the Switzer Report
Print This Post A A A

Friday Close
Change
Change %
Week Change %
Dow Jones
17,568.53
-163.39
-0.92%
-2.86%
S&P 500
2,079.65
-22.50
-1.07%
-2.21%
NASDAQ
5,088.63
-57.78
-1.12%
-2.33%
ASX 200
5,566.10
-24.20
-0.43%
-1.83%
Data for week commencing 20 July

The week that was, was, simply, China! China! China! A bad week for commodities, blame China! A bad week for stocks, blame China! A bad week for the dollar (though I quite liked that) blame China!

You might recall that about a month ago, while lazing on the island of Lemnos in the northern Aegean, I argued that Greece was a sideshow and the main game would be China. That was before the 30% sell off of the Shanghai Composite. Of course, I stressed that if you have a crazy market that goes up 150%, it's not so crazy to see a huge retracement of 30%. Then I argued that it's not clear that this market fall would have a big impact on the economy. Others pointed out that only 98 million Chinese play stocks and that's a small group in a country of 1.357 billion people. We're talking only 7% of the population and not all these would have been losers over the year, as the market is still up around 120%!