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by exelius
3946 days ago
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Yeah the general rule with currencies is that as long as they're not too volatile, they can go up or down without huge implications to the economy. The other thing to realize with the Chinese stock market is that even though it dropped something like 50% in 2 months, it's basically flat since January. If you look back to 1 year ago, it's still up 40%. You don't get 250% growth in 6 months without an accompanying correction cycle. The biggest problem with China right now is that it's high on potential, but nobody knows what the right value should be. So it will continue to be volatile like this until there's a better idea of if Chinese companies are creating real economic value or not and to what degree. |
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