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Coming down from peak and crash are two different things. US market has also retreated from the peak since earlier this year.
A good US market will embolden trump to be even more aggressive. Everyone knows this. Both market are one opposite sides this time. US market calms the overall market when everyone is on the same side.
Chinese investment is still too high. I don’t have the numbers on top of my head. A big share of Chinese investment is in real estate, and the central government is coming down hard. A lot of the Chinese market downward action is because of this deleveraging and rebalancing action. It’s mostly due to Xi’s policy but now he can blame Trump.
This absolutely has to be done for Chinese economy’s long term health. Short term pain but long term gain.
US market is benefiting from the repatriation of foreign fund. Part of it is the tax reform so companies like Apple are bring back their money. Part of it is rising rising interests rate so money is leaving EM and coming back home. That’s despite the trade war worry not because of it.
No doubt Trump will read the market action as confirmation of his policy. Just that Trump is dumb doesn’t mean we should be. Trade war is hugely damaging to the real economies. Just read some of the comments posted by the Kansas Fed. Main street businesses are freaking out.
Even at 3500, that’s already considered post-crash considering the all time high was well over 6000. So diving from 3500 to 2750 is not really anything. Just a walk in the park.
another red day for Asian stocks looks like. When is Chinese government starting to intervene to keep the market stable. Need to throw some punches, sorry yuan, to buy equities.
It’s only useful when you need to pay capital gain tax on an investment. It’s a cost basis adjustment, not an annual deduction.
When you sell a house and need to pay capital gain tax, you adjust your cost basis for all the years by government published CPI to avoid paying capital gain tax on inflation. For example, if you bought a house in 2007 for 750k and sold for 1M in 2018, assume the accumulated total inflation from 2007 to 2018 is 20%, your cost basis would be 900k. With 60k commissions and other costs, your capital gain would be 40k instead of 190k. This is a more reasonable calculation method.
For consumption items, since most people don’t resell them and almost never resell with a gain, there’s no capital gain tax to be paid and no capital loss is allowed anyway. If you bought a car for 40k, drove for 5 years, then sell for 20k, since you can’t claim a capital loss, there’s no use to increase your cost basis.
That was a pretty interesting story if you dig into it. UMC that is partially owned by the Fujian government hired employees from Micron out of the Taiwan office and used Micron’s own project names and roadmap to tell people what they will be working on. When the taiwanese investigators cracked down they were arresting people with cell phones and USB drives full of proprietary data that was being taken away.
This seems to be a classic case of self dealing by the state government. We will invest in a company, they will steal a competitor’s secrets, then we will shut the competitor out of the market with a copyright suit once we are building products using the stolen IP
So that’s how China punches back…through the courts…
let me understand this
Chinese government first steal the trade secrets of an American company and passes it to Chinese company (fair chinese practice, no one should complain)
When the American company protests, chinese government bans the sales of American company
And this is related to trade war…Which part? first or the second? May be first is the general way of doing business in China. And second is related to trade war.
American fruits rotting in Chinese ports waiting for “health inspections”
Chinese media complaining about some American companies unfairly treating the Chinese, like Starbucks charging more in China than US
People organizing boycotting of American goods online
You make it sound like US has all the cards and China has none. Trade wars are fun and easy to win, huh? If you happened to work in a company that’s impacted you may have a different opinion. Many people’s lives can be affected.
China has been at war with the US for decades with BS practices. The US finally has someone in charge that’ll fight back and not apologize for American success and wealth.
