A lot of hedge funds got creamed on this last down draft just as they did on the last one. The statistics from the government are bogus. If the statistic are fraudulent that means the policies are fraudulent.
China is a control economy. That is they are authoritarian. They do not have rule of law. And they are incompetent.
The IMF did a Bill Clinton move by including China in the SDR basket of currencies. Bill Clinton included China in the WTF World Trade Federation in order to encourage them to reform. And of course to pay off his campaign donors. What a scum. China at the time was in no way qualified to join the arena of global trade. And this action hurt the US measurably. The US lost millions of jobs.
China is not qualified to have their currency included in the IMF SDR. Good lord, they peg it to the USD. But the IMF want to encourage China to reform. This inclusion brought close examination of China and capital didn’t like what they saw. December’s outflow of currency was double the highest monthly outflow. Capital flight.
I could care less. All I hope for is that enough market participants act in a way that my momentum system correctly forecasts the direction of the market.