The Federal Reserve’s POMO policy has been artificially driving up the US stock exchanges for years. The NYSE is reaching new highs daily (not adjusted for inflation) without any supporting financial data. The volume of stocks sold (normally known as demand) is down over 60% from a few years ago. When demand is high (such as for ammunition), the price goes up. Unless the market is manipulated.
The Chinese are not manipulating their markets which just went into the red for the year. In the long run, it will not matter: the government will confiscate whatever little is left in your retirement accounts.
David DeGerolamo
Chart Of The Day: Chinese Stocks Turn Red For The Year
There was much chatter by the punditry in the early part of 2013, when the Shanghai Composite appeared relentless in its surge, when it was tracking the S&P virtually tick for tick, hitting a 2013 high in mid-February, and which was “explained” to be the prima facie proof of the Chinese rebound. The reason said chatter has disappeared is that as of last night’s close, the SHCOMP is now officially red for the year.
