For those investing and trading, this has certainly been a week with so much drama. The falls that we are seeing in this first week of the year is what you would normally see in a whole year.
The equity markets are spooked; it is very convenient for the West to blame China for everything that goes wrong. The Americans, the Europeans and before them, the Japanese – they have all done Q E (quantitative easing) with their economies for a very long time.
This is a new development for China. Obviously they are not as well versed as the other well-developed countries as far as regulation and compliance are concerned. It is a steep learning curve. Here again, because of the enormous reserves at their disposal, the Chinese have enough arsenal to carry on life without too much trouble !
This is only the first week; we have another 51 weeks to go. This is going to be a very volatile year. So for those investing, take care. Guard what you have; do not listen to glib salesmen trying to talk you into buying something exotic you don’t understand.
If it does not make sense and you don’t understand, STAY AWAY. Walk away.