The 8.8% drop in China Market was a good early correction since it was up 130% last year. It can actually prevent the market to crash. The market was almost up 4% yesterday already. The China’s Gov’t did a good job to warn the speculators not messing around in the market. It’s like the flippers in the U.S. housing market. But the only different is that the U.S. kept the interest so long to HELP the flippers to inflate and flip the houses.
I never borrow money to invest and have very diversified portfolio with extra cash flow. The massacre is only for the speculators, not the long term investors. I am sure tons of speculators who bought margins were forced to sell and lost all the money.
New-home sales plummeted by 16.6 percent in January from the previous month. There should be a massacre or crash for housing market, not the stock market since the housing market is way overpriced without any correction.
