It’s fair enough that the economy will eventually at some point decline but not necessarily a collapse per se... it could be a managed decline... well i would compare this behaviour of the media to a person buying lottery tickets hoping for a jackpot one day...
Chinese Economics Thread
- Thread starter Norfolk
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PiSigma
"the engineer"
Could you post a thought on the article???? So I can decide if I should read it or not...
Come on @escobar
You can't just post stuff without any meaningful comment! You are senior member here. Show good example. What are your thoughts?
AssassinsMace
Lieutenant General
I read on Bloomberg that Koch is investing big on EV infrastructure. No wonder they didn't touch Mike Pompeo.
escobar
Brigadier
A supposed trade deal that don’t turn out as Trump want it to.
Ironically EU managed to get from CH the CAI deal they want without a self-inflicted trade war suffering.
Well, it adds weight to opinion pieces on the US losing the trade war.
So Fidelity is coming. I hope Vanguard joins the fray too. Index funds in China collect atrocious fees.
Going slightly off topic, or maybe still right on topic, it was something I read a couple of weeks ago.
There is an expectation that the mutual fund industry, the ETF will eventually replace all mutual funds.
That makes a lot of sense to me. With low commission trading, and relatively low maintenance costs of most ETF, the mutual fund seems obsolete with their old ways of no exchange trading and generally higher fees.
An ETF holding a basket of stocks, there would be arbitrage opportunities which will add liquidity to the market, and make the bid and ask real tight. Two developments that should be good for the market.
The drawback is that the number of stocks have dwindled over the years in America, while the number of ETF has exploded. Sometimes there is wild action because someone had to liquidate all their positions. (There were stories back in 2008, during the crisis they had to sell their bonds, but there was no takers, so they sold short the bond ETFs, distorting the market with the wild swings.)
China on the other hand, seems like the number of new issues and number of ETF are both growing. That should be good, more liquidity, more of a fair market. Will there be wild swing to due margin calls in China?
Hard to say.