The U.S – China divergence…Which market is right
The U.S. markets have been marching up and hit a 4-year high with the S&P 500 touching 1425 this month. On the other hand, the Shanghai Composite is at a 3.5 year low, around 2050. This has to be one of the strangest phenomena in world markets today. On the one hand, China was being touted as the savior of the global economy for the last 4 years since the financial crisis of 2008, the growth engine of the world. On the other hand, its markets are absolutely in the dump. Take a look at this scary chart comparison of the Shanghai Composite and the SPX (S&P 500 index)