Submitted by Lance Roberts via RealInvestmentAdvice.com,
China Matters
Over the past few days I have repeatedly heard the following statement:
“China isn’t that important as it is only 7% of the U.S. economy.”
While that may be a true statement in relation to the economy, it is a far different matter when it comes to the financial markets.
With WTI trading with a $32 handle, collapsing below December 2008's $32.40 lows briefly overnight, OPEC's broad basket price for crude has also reached a worrisome milestone. Amid Saudi price cuts to Europe, the basket price was set at $29.71 today - the first print below $30 since April 2004.
WTI broke 2008 lows overnight... and then ran stops to overnight highs...
and following the inclusion of Indonesia's crude oil price, OPEC's basket price is back below $30...
For the first time since April 2004...
Submitted by Jim Quinn via The Burning Platform blog,
Chinese stocks have retraced 50% of their overnight losses following the lifting of the circuit-breaker rule. China FTSE-A50 Futures trading on SIMEX are up over 250 points, trading at the highs of the day but for some context, the index is still down 14% from post-Christmas highs.
What happens when China opens? What would you do with a stock market trading at 64x P/E and as fragile as it has been proved to be?
Submitted by Charles Hugh-Smith via OfTwoMinds blog,
This week I am addressing themes I see playing out in 2016.
A number of systemic, structural forces are intersecting in 2016. One is the end-game of debt-fueled "growth."
We can summarize the official "solution" to the Global Financial Meltdown of 2008 in one line: borrow and blow trillions--of yen, yuan, dollars, euros, reals, you name it.