Stock collapse 2015/ Carlos Pueblo

Stock collapse 2015/ Carlos Pueblo

I was waiting for a left eye’s cataract procedure this morning, the internet

News broke out that Chinese stock Index collapsed 8% and Dow Jones went

Down one thousand points. I immediately released an article on my blog for

The record that it was a correction, the stock market just ran into the bottom

of the curve. Most of my retirement fund is in the stock market and I have been

through at least two bottom in the past 28 years, 1987 and 2008. The market always

comes back.

First of all, let’s talk about Chinese market. The Shanghai Market is very small in

compare with Chinese Economics and also, Chinese security is very exclusive only

for Chinese citizen investors. The Chinese market has been up more than 100 percent

for the l2 months and downing 40% is still ahead of a year before. Chinese government

attempted to save the market by increasing their currency circulation just lake U.S.

, Euro banking, and Japan, by this method, diminishing   its currency also increase its

export. China is facing something that U.S., Japan, and Taiwan have been through.

Chinese labor costs is getting higher than its neighbor Philippine, Viet Nam, Thailand etc.

The factory is moving out of China so in international investment. It is very difficult for

Chinese economics to maintain double digit growth any longer, a 7% increase for China

this year is very good in economics point of view like 3% increase of U.S. economics.

This rate is why U.S. unemployment rate is about 5%, a sign of fully employed nation.

1987 and 2008 were both under the Republican administration, Ronald Reagan and George

W. Bush 16 years in total duration. We saw the boon and the bust. Stock collapse 2015 is more

similar with year 2000 while at the end of Clinton administration with a stock correction.

The Central Bank did relax some currency  by lowering the interest rate for housing industry

to create a fantasy of housing boom and the result of a bust in combine with a trillion war

expanse. We do not have both of them this year. Once the market reaches to the bottom,

the only direction of the market is only up and up we go.

I have not complain for my saving in the security market throughout my working years. I

Had taken out of my saving principle during my unemployment time to support the family

Including two kids college education and the left over is really the growth of such investment.