Yesterday, I grabbed a cab from the office to home – but before I tell you the story, an important announcement. I’ll be travelling to LA tomorrow and won’t be back in HK until Feb 21. I’ll start my blog again on Feb 22.
Back to the story…as I was saying, I grabbed a cab yesterday…..
“Hey! Would you like to know why the world, especially the US stock market crashed? In the process, you’ll make a ton of money” said the cabbie as soon as I had made myself comfortable.
“Sure!” I replied.
“Let me tell you a story.
In early November 2017, the Chinese government approached N. Korea and said:
“We all know the world’s stock markets are overvalued. It won’t take much to send them down, here’s what we do. We short the indices. You then set off some missiles, threaten Guam and so on. Stocks will crash! We’ll make a fortune!!”
Kim said: “That’s a wonderful idea! Let’s do it!”
But as with all plans of mice and men, the plan went astray: not only did stocks not crash, they moved higher, and higher and higher! Both countries lost a ton. So, on Jan 12, China stopped and reversed. It kept buying as the stocks, especially the S&P, climbed inexorably higher!
Then the US, having lured in the longs and knowing the market was susceptible to a fall, begun selling and shorting big-time. The US indices were all fair game: S&Ps, Dow, NASDAQ, and the Russell. Prices collapsed and went below the earlier November short entry. So, the Chinese have had their fingers severely burnt over 600 S&P points in five months!
And the pain won’t stop until the Chinese give in to Trump’s trade demands”.
Just a story from a HK cabbie. I have no idea where he got it from. Still, it makes for interesting speculation, no?