Originally published August 24 2015
HAPPENING NOW: China's unfolding market crash resembles 1929's Black Thursday, plunging world economy into depression
by Natural News Staff
(NaturalNews) Chinese stocks are believed to drop 9 percent again in the next four to five days. The losses could be as bad as the losses that occurred during U.S. exchanges in the Wall Street crash of 1929, according to Thomas DeMark, founder and CEO of DeMark Analytics.
DeMark reports that the upheaval on the Shanghai Composite Index is on a path to destruction that resembles the crashes of 1987 and 2001. However, it could plummet even further according to DeMark. He predicted that the Chinese stocks would drop an additional 14 percent within three weeks in late July, which resembles the stock market crash of 1929.(1)
"That's what could happen," he stated to CNBC. "In 1929, the market declined 50.6 percent. So that was a warning that there was something more serious in the market breakdown."(1)
Largest single day loss in a decade
One would have to be crazy to deny that China's stock market is on the downturn. The Shanghai Composite Index lost 30 percent of its value within a three-week period in mid-June. After it rebounded, the Shanghai Composite plummeted again in late July. The end result was the largest single-day loss in nearly a decade.(2)
DeMark stated this his company turned bearish on China on July 12. At the time, the market topped, and it has predictably dropped by 38 percent since then. "The die has been cast," said DeMark, as reported by The Washington Post and Bloomberg. "You cannot manipulate the market. Fundamentals dictate markets."(1,3)
He believes that the Chinese blue-chip index, which closed 4.3 percent lower Friday at 3,509.98 points, to drop anywhere from 3,282 points to 3,200. However, his model predicts that a possibility of a 40 percent rally, which would be parallel to the activity in 1987 and 2001. But it could get worse. DeMark believes that a further fall is feasible and would mirror the world stock markets during the Great Depression.(1)
Continue reading the full article at Collapse.news.
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