Loading ...This is the fantasy that Wall Street is still selling its clients. Ignore the two MASSIVE overnight selloffs this week, and focus on U.S. economic and policy divergence.
Deja vu of 2015, it gets even dumber. This week’s Barron’s cover story is where to find bargains in Chinese stocks.
The prevailing belief on Wall Street is that the Chinese government is in control of the stock market. Leave aside the fact that it has already lost $3 trillion in value. That is the equivalent of the entire French stock market.
If this is control what does lack of control look like? Remember the last major selloff (circled) in 2015. The government banned short selling, halted the market for days at a time, and then banned selling altogether.
It only lost -50% of value.