- Their media lies and only speculate that they are recovering. Leading indicators like PMI tell a different story.
- They went absolutely ballistic in their response due to SARS fears.
- No other country (except Singapore) is taking the crackdown response China has. Other countries are gonna take a harder hit than China.
- The US in particular was inflated. You all think its from fed injection and repo markets but let me tell you, the massive bull run was primarily due to the weakness of the global economy.
- The world had a TINA market for the US. Foreign countries were injecting money to prop their economies up… and this money got quickly invested into the US as a safe haven. Just look at Italy’s 2019 debt bubble.
(Hint: domestic funds stopped investing as much cash into the US starting in 2016. We also didn’t inject enough money into market to make up for the increased market cap, even if 100% were immediately invested.)
AND MOST IMPORTANTLY, Chinese supply chain is a huge indicator for us. Wu flu started in 2019 and we are barely feeling it now in 2020. It’ll be months before we can even think about recovering, even if China is recovered (and they’re not.)
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.