The Sentiment Switch and Chinese stock market crash!

I noticed the Chinese stock market fell 5% last night—at least that’s what’s been reported by Bloomberg and others; I actually didn’t notice it really. Was it JR’s Currency Currents of yesterday talking of China coming “unhinged” that did the trick? Doubtful, but his views are part of that interconnected and complex hierarchical web we call sentiment.

We’ve been talking about China for a while now, as you know. We see China through a skeptical lens. And though we’d love to say—yes, we called it right on the button (assuming China does come unhinged; still a big assumption), we can’t.