Chinese stocks are up +20% from their lows because they are leading indicators – that’s what stock markets are. The -70% peak to trough crash in Chinese stocks proactively predicted this global economic tsunami. Now they are speaking to the global risk managers, softly, telling them to cover their China shorts.
There’s a new leader in global finance emerging in The New Reality. She has $2 trillion in reserves, and she’s wearing the pants. Alongside your Christmas cocktails, you should be thinking about the ramifications of as much. British merchants who didn’t see the USA coming in the early 1900’s will remind you that history has a tendency to rhyme.