Saturday 23 June 2007

China 2007 vs. NASDAQ 2000 - ZEAL analysis

Interesting post from 22nd June comparing the NASDAQ in the year 2000 and the current Chinese stockmarket.

China 2007 vs. NASDAQ 2000

Whilst there are significant differences in the structure the similarities in the figures makes this a compelling little story.

All stock manias must come to an end as exponential price growth is inherently unsustainable. Eventually the public has bought all the stock it can buy so there are no untapped pools of capital left to bid on stocks. At this point the whole house of cards starts to implode. The SSEC’s behavior in the last month mirrors the NASDAQ’s around its own March 2000 top remarkably well. Caveat emptor.

H/T China thread on ADVFN.

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