Fra Zerohedge:
Deutsche’s Jim Reid updates a chart he used back in early June comparing the Shanghai Composite recent performance with that of the NASDAQ back in 1999-2000. This is what he says:
The ascent was very similar back in June and now the decline is pretty much on exactly the same path. So the NASDAQ ’99-00 has almost been like having a stock almanac for the recent Chinese experience. It reminds me of Back to the future II where Biff steals the time machine to take a sports almanac back to his younger self in order to make millions betting on these events. A great film. Although having only watched it recently again, I was amused to note it largely takes place in 2015 and everyone has flying cars. So perhaps the pace of technical change is not as great as was anticipated back in the eighties!
True, but BTTFII never anticipated the massive economic impact of “eyeballs” on technological progress. Anyway, here is the chart. If past is indeed prologue, now may be a good time to buy some Shanghai Composite calls, especially with China’s desperation getting more profound with each passing day.
