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Upvoted, because you hit the core issue. A lot of money is just betting and doing no research past staring at stock valuation chart. Sell if stock is going dow
by vardump 11y ago
Upvoted, because you hit the core issue. A lot of money is just betting and doing no research past staring at stock valuation chart.
Sell if stock is going down, buy if it goes up. That tends to amplify random noise to a high level of volatility.
Contagion risk to the rest of Chinese economy is what the people should be worried about. A lot of the bets have been done with money loaned from somewhere. This will affect the rest of the economy.
- LiweiZ 11y agoMany average investors just watch what's said on media and friends and take the follower strategy. Actually rulers are taking advantage of it, though it seems hard to believe at first.
- hockley 11y agoIs it even possible to conduct proper valuations of Chinese equities? If the equity markets have the same standards for transparency as other sectors of Chinese society, I don't see how that's possible.