Vulgar Display of Power
As you might have guessed from the title, I’m going to touch on China a bit here. This is a complex situation, but not all that surprising considering the tensions over the previous few years. The Chinese Communist Party seems to want to make sure that Chinese companies and their leaders know who’s in charge. That said the government has started to pull their punches a little. They have noted that they will consider the market impact before introducing new policies in the future. Below we’re looking at the top 30 holders of MSCI China stocks on the left and the same for the battered KWEB names on the right. In non-China news last week, volume for equities was pretty light. Chairman Powell put the market at ease on Wednesday when he noted that while the US economy has come a long way, it still has a ways to go and the Fed is in no rush to change its dovish policy. That said we’re not fully clear of the land mines Washington is putting out there. Next up is finding a way through th...