Well this is from the lows. I think the Class A shares in China were down 20% at one point and like our markets, bounced off the lows but still down. Also, YINN is leveraged 3 times.
Never traded one in the indices, but aren't bear markets categorized by violent and quick rallies followed by relentless selling?
Yes and no. Bear markets are really boring. They "generally" open up and drip lower but the ranges are very small. The avg bear market usually last 12 to 18 months. Bull markets are actually characterized by very violent price action. It only feels weird because the last 4 years or so the FED has "removed" most of the volatility of the market. The way I would explain a bull market to a child is a market in which it's incredibly difficult to stay long. The sharp selloffs are meant to shake the trees and get all the marginal longs out. It's been very weird the last 4 years to have a market where the trees have never shaken. You could buy all you want on full margin and never get stopped out. I actually view this price action as VERY constructive. For the first time in 4 years, investors are getting a risk premium for taking risk. That is a GOOD thing.
Yeah a lot of people think bear markets are volatile. But what bear markets are really is simply just a lack of buying. That's why the rallies fade and why the selloffs are so slow and gradual. Bull markets are full of leverage and quick buying and selling and aggressive risk taking. A good analog to this is Gold. Gold has been in a bear market for 3 years now and it's pretty dull and boring. Very small moves. Any big gap gets faded but not with aggressive selling, just gradual selling. The bull market in Gold was vicious. Huge monster pullbacks and gaps all over the place. Very violent.
Let me say this.....anyone who tries to short this market (indices) with a stop will get taken out. Anyone who tries to buy this market with a stop will get taken out. The market will not bottom until the marginal speculator has emptied his pockets and leaves the room. Expect this price action to continue for weeks.
they don't make it easy for either side Mav, thoughts from Dalio. Mav he often talks about spread markets, is he talking about listed markets: stocks, futures, bonds or something more specific he uses that term a lot. http://www.marketwatch.com/story/br...ching-quantitative-easing-measures-2015-08-25