As is often the case, trading short term market stability can result in a negatively correlated long term outcome. When it comes to Chinese market dynamics and debt “this means the need for near-term stability is taking preference over the desire for long-term sustainability,” an HSBC report, benchmarking the “new normal,” observed. Overlay these economic thoughts against an October 19 Capital Economics report that addressed credibility regarding Chinese economic data, which reported steady GDP figures across a turbulent year, and one has a combustible long term environment papered over with short-term volatility repressing measures. HSBC: The new normal in China…
Two Analysts Question China And Their Economic Reports For Differing Reasons
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.
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