Think U.S. Is Volatile? Check Out Shanghai

For investors that think things have gotten volatile here in the US, the average difference between the daily high and low of China's Shanghai Composite over the last ten days is all the way up to 5%. In the US, the 10-day average high/low spread for the S&P 500 is currently 2.2%. While volatility has steadily ticked higher here over the last six months, the recent action in China has been extremely hectic.

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Comments

[rainman:]

The hidden reason for Shanghai is that that investors want to squeeze government for more candies, unlike the capitalist Fed, the communist SEC has yet done so and hopes that the invisible hand of market would self correct the bubble.

no wonder AG says that there is more capitalism in China than the Fed.

2008 Apr 01 12:56 PM

[David Oliver:]

Wow, thats amazing. All the investors in China are deliberately driving the market lower to try to force the government to intervene.

No one seems to have told my Chinese mother in law who is headed for the exit if there is enough of an upswing for her to get her money back.

2008 Apr 01 08:56 PM