Make no mistake, investors didn’t need any more reasons to be bearish on Chinese equities.
Mainland markets are veritable casinos dominated by retail investors who until last summer, were enthralled with the prospect of easy riches in an environment where shares only seemed to know one direction: up.
We’ve long known that Canada, like Sweden and Denmark, is sitting on a giant housing bubble.
Indeed we took a close look at the issue back in March of last year and have revisited in on several occasions since. Put simply, the divergence between crude prices and the country's housing market simply isn't sustainable a you can see from the following chart:
Submitted by Lance Roberts via RealInvestmentAdvice.com,
Over the last couple of week’s most of the weekend reading list has been attributed to the market’s stumble since the beginning of this year. Importantly, as we rapidly head into January’s close, there seems to be little to reverse the negative tide sweeping through the market.
As I wrote earlier this week, this isn’t a good thing.
Some soothing month-end meditation...
So let's start with today's idiocy... US equities driven by fundamentals!!
Via Scotiabank's Guy Haselmann,
By surprising markets with a move to a negative deposit rate, the Bank of Japan gave investors temporary reprieve, providing a much needed opportunity to pare portfolio risk at better prices. Unfortunately, the improvement in financial asset prices will be short-lived; except, of course, for long-maturity Treasuries.