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China moves to counteract stock market bubble

The Chinese stock market has effectively doubled over the past year and a full-scale mania has gotten underway with mainland individual investors opening millions of brokerage accounts a month. This is a good thing, not a bad thing, as the remaining phase of China’s economic rebalancing must include a consumer component to offset the declining…

Effervescence Extrapolated

One of the hallmarks of investor sentiment is the tendency¬†to believe things can only get better after they’ve been really good for awhile. This works in reverse as well, which is why Black Swan strategies and an obsession with hedging or market-timing always reach a peak right around the time a market has just put…