Shanghai Stock Market Passes 6000
Wow… I never thought the bubble would get this far. According to an article from Barron’s the market will continue on its relentless march into bubble land:
We’re quite late in the day in the rally, but quite early in the bubble. Valuations aren’t ludicrous, just expensive. They will get ludicrous before the correction. – Tom Naughton of PMA Investment Advisors in Hong Kong
Optimism springs eternal in the bigger parts of a bubble. Maybe it will double again from here during the lead up to the Olympics. What is for sure, however, is that valuations are already far more than expensive (69 times earnings on average for the Shanghai Stock Exchange according to an article from todays Wall Street Journal).
What do you think?