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AUG 30, 2015 @ 02:14 AM 4,208 VIEWS
China's Stock Bubble Burst Is Only Half Done
John S. Tobey
CONTRIBUTOR
I write about investment themes being overlooked or misinterpreted.
Barron’s article, “China Has Another 15% to Fall – Strategists see the Shanghai Composite falling to around 2700 before bottoming out,” looks too conservative. That 15% number uses fundamental analysis, excluding the psychological washout that completes a burst bubble.
Disclosure: Author is 100% invested in cash reserves
Buckle up! China’s battered, bruised, and bloodied stock market could fall at least another 15% before it hits the bottom.
That’s the call from some top strategists and money managers, who reckon that the Shanghai Composite Index, the flagship benchmark for mainland China stocks, may find a floor around 2700, down from 3230 at Friday’s close.