China market and 2801

I think these videos explains the situation at China better than myself. I dont claim to be an expert or anything especially when it comes to politics or stocks.

Brief summary

  1. 70% of China’s wealth is tied up in real estate
  2. The real estate industry holds approximately 1/3 of the entire China economy (Which is huge imo)
  3. So if real estate collapses there, the effect will be huge no doubt.. “Evergrande”

Lots and lots of FUD going around for China currently and unfortunately financial transparency is lacking here. So the only thing that is transparent here are the charts..

Random scribbles

You really dont wanna see them losing the $18 level or it’s gonna take a long long time for it to recover given how the market structure has broken.

How you should invest in ETF is defo different from your shit-ass alt coins. This is where you can build unwavering conviction because you know that the probability of the China economy going to zero is pretty damn low.

It is more probable that it will go much higher than current levels 2-3 decades from now. So, patience really pays here.

If you are a “lazy” investor then ETFs play would be ideal for you. Tbh, I started out as “lazy investor” hence my stocks portfolio are really lazy and simple but effective. I know all the ETFs that I hold will only appreciate in the future. REITS, VOO and 2801 (more speculative)..

The reason why 2801 is down so much would be due to the huge real estate allocation relative to their economy and the downfall of many China tech stocks.

But this should not come as a surprise lolol, look at how much tech stocks have mooned, only a matter of time before they drop like grapes, nothing goes up in a straight line.

Not forgetting NIO too

The only country currently that is capable of competing with US.. Only time will tell if I am right on this conviction. Let’s review this post again sometime in the future. (Maybe a few decades later?)

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