China's stock market en fuego (the Greenback, less so)
Back in late February, a 10 percent swoon in China’s equity market touched off a global sell off. Had you NOT listened to us and bought in on the dip, you’d sitting pretty and swimming in coins like Scrooge McDuck. Yesterday, the Shanghai Composite Index crossed 4000 for the first time ever, a whopping 50 percent higher than where it stood at the end of that dreadful day just two months ago, and on the heels of a 160 percent gain last year. Sorry, we were dead wrong. Now we hear stories of people pawning their homes, cars, children to raise capital for the stock market. Very sensible indeed.
In a somewhat related note, yesterday also saw the American peso dollar broke the psychological 7.70 level against the Renminbi for the first time, and currency experts are now targeting 7.30 for year end 2007. Luckily, we had our hard earned Greenbacks invested in Dutch tulips and made a killing, narrowly escaping financial ruin. Whew … to think we almost couldn’t afford a drink at Bar Rouge.
