Shanghai Index

Shanghai Index closes down 6.74% today. It was a long time since I last remember seeing the China market sunk such a magnitude. The academics or news writer or whatever they are called have deemed that the chinese market has entered bear market, which has by now dipped more than 20% from its recent peak. I reckon this is another huge reaction, and since it was so fast and aggressive, I also reckon the rebound will be just as furious, like a flying dragon. Fundamentally, I reckon the world economy is on its way to recovery and nothing has changed this fact yet. This would likely prove to be a enormous effort and shakeout by the big boys who had missed out the huge rally to accumulate their long term positions. Likewise, I believe those that has missed out the rally this year, would have to grab this once in a lifetime chance before it is gone soon. Mr Market, at most times, does give a second chance.