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Shanghai Composite

Mr. Market turned face

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Some signs of the stock market is cracking:

1) The leaders such as Google (Nasdaq: GOOG), Apple (Nasdaq: AAPL), Berkshire Hathaway (NYSE: BRK.A, BRK.B) are retreating.

2) CIC is thinking about buying equities again, Renaissance Technologies is one option (last time CIC pulled trigger, it bought Blackstone pre-IPO at top).

3) Goldman Sach is selling. It sold a stake in ICBC recently.

4) Last but not least: US CEOs still pessimistic about economy.

Two leaders in this globe

China: it seems to me a lot of stimulus money flowed into stock market and housing market. Good for short term (bubble), but it did not fix any problem in the economy. BTW, China recently opened the IPO gate (Guilin Sanjin IPO in Chinese; English)

Guilin Sanjin pic

US: it’s still the king. But the market ran up too much in last 3 months. Need to take a break. From valuation point of view, I felt some US companies with global presence are more reasonably valued.

Commodity got killed in this market. Guess that’s why we call those commodity: they are the same no matter who produce it. I think in long term, companies provides non-commodity like product and service have more competitive edge.

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