Thursday/ falling off a cliff

Check out these charts of the Shanghai Stock Exchange’s composite index. As of the end of the day Friday in China, the index is down 27% from its June 12 peak, wiping out some $2.4 trillion of value. ¬†Individual investors* account for about 80 percent of trading on mainland Chinese exchanges.

*Investor or trader or speculator? I’d say one would you have stay in the market for oh, one year, to be called an investor.

SSE Comp 1 yr
Where will it stop?  A one year view of the Shanghai Stock Exchange composite index shows how far it has gone up in one year (150%). But even with a 27% loss from its recent high there is still lots of room to fall.
Twin peaks? This chart shows the massive 460% commodities-driven boom in 2006-2007 which fell back to earth with the index going sideways for 6 years before the recent run-up to 5,000.

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