Stock Markets Should Not Turn Into Gambling Casinos – A Look at the Shanghai Composite

In: Informatica
The Shanghai Composite started out as a way to capitalize Chinese Businesses, but with all the market manipulation it seems more like it’s turned into a gambling casino in many ways; much like the NYSE, or NASDAQ. It seems that the Chinese People who are really great at saving money have boosted stocks to an unreasonable multiple as many stocks were trading at 80-100 times earnings. Then when the Global Economic Crisis hit China, many of their companies that were involved in manufacturing and exporting took a huge dive in profits, meaning their stock price based on...