Tuesday, July 28, 2015

Flied Lice anyone ?!!

Check out the charts via the link below.

Chinese Markets Chart Snapshots

Take the world’s largest populated country, open a stock exchange, ensure that a majority of the companies are owned by the state, add to the excitement by making sure that only a 1/3rd of the total listed shares are free float (means public can buy/sell freely). Now add fuel to the fire with the abundant financing options for stock market transactions – margin financing. Oh, and I almost forgot a majority of the folks who dabble in Chinese markets are below the age of 35 – meaning still learning! Ouch!
So you have a LOT of young/inexperienced people chasing very FEW stocks with a LOT of cheap money!!  
As long as the market is up all is well, but the moment markets head south it turns into a bloody stampede. As is evident from the recent events unfolding in the Chinese stock markets. 

Knee f***ing hao folks! Welcome to the party and please bring some “flied lice”!! mwahahah….

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