china takes a dump, page-7

Short term corrections become long term averages.
If a correction is short term and it bounces quickly this tends to indicate that the market has over sold.

There is evidence that the market has not oversold because the market is still well above what the average gain should be over a period. It would seem that much hype over China has distored the market yet again, when will people realise its China vunerable to a world recession.

I have looked at some of Chinas stocks and some energy stocks have very high pe ratios which are not justified in a volitile market. Then others like steel producers have low pe ratios but dont represent the losses yet to be realised.

In summary I think china will have to inject around 10 trillion Usd and increase wages for a market recovery. The standard of living for Chinese ppl will need to increase so they can become more active consumers. I see power prices will rise substatially in China over the next 10 years, as currently power for domestic users only cost .4 of a cent per kwhour. This also explains some of the reasons China uses too much coal, electricity is way too cheap, which means they are not efficient.
The Chinese will eventually use power prices to control uranium and coal assets around the world as unanium minning takes off and coal production peaks. Electricity you could say is the value added component of coal and uranium, a 30% increase in efficiency would give the chinese market domination over those resources.

I see as markets crash and burn China will take over.