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.
LIFE begins @ 58! 