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Fri12152017

Last updateSat, 29 Jul 2017 12am

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China Stocks support should be at 2000

China's stock market has slumped to its lowest level in 3-1/2 years this week and the selling appears to be relentless, but analysts tell CNBC that Chinese shares are not on the verge of a 2008-style market collapse.

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What history can tell us?

Those who cannot remember the past are condemned to repeat it.” -- George Santayana (1863 - 1952)

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Brazil cheapest since 2006

MSCI Brazil Index has dropped to the cheapest level since 2006 versus global shares as investors pulled $869 million from the nation’s mutual funds this year.  It is the only country among the BRIC to post outflows.  Brazil’s debt return to foreign investors is also the worst losses since September last month.

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Why China Stock Markets not performing

The year-to-date performance of the China stock market is down 0.24%.  By many valuation measures, Chinese stocks are cheap. The Shanghai Composite is valued at 12 times last year’s earnings, within a whisker of its record low and half its long term average.  Using forecast earnings for the current year, the index is also near all-time lows with a price to earnings ratio of 9.7.  What is happening?

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The Fear Index: Vix and Vstoxx?

Volatility is rapidly becoming an asset class of its own right.  It is now used both by hedge funds in speculation and as a hedging instrument for traditional equity investors.  The measure of volatility in US is known as Vix (Chicago’s volatility index) and in Europe is called Vstoxx.

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