{"id":9488,"date":"2015-06-28T06:38:49","date_gmt":"2015-06-28T11:38:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=9488"},"modified":"2015-06-28T06:38:49","modified_gmt":"2015-06-28T11:38:49","slug":"its-1929-in-china-heres-the-chapter-and-verse","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=9488","title":{"rendered":"Its 1929 In China\u2014-Here\u2019s The Chapter And Verse"},"content":{"rendered":"

Its 1929 In China\u2014-Here\u2019s The Chapter And Verse<\/a><\/h3>\n

I\u2019ve mentioned the Chinese stock market mania here briefly in recent weeks. I\u2019ve now compiled a fair amount of data along with some interesting anecdotes that show just how crazy it\u2019s gotten so I thought I\u2019d spend this week\u2019s market comment laying it all out for you.<\/p>\n

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\"\"<\/span>Jesse Felder<\/span>\u00a0@jessefelder<\/span><\/a><\/div>\n<\/div>\n
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U.S. Dot-Com Bubble Was Nothing Compared to Today\u2019s China Prices http:\/\/www.<\/span>bloomberg.com\/news\/articles\/2015-04-07\/u-s-dot-com-bubble-was-nothing-compared-to-today-s-china-prices\u00a0<\/span>\u2026<\/a> $<\/span>FXI<\/span><\/a> $<\/span>PEK<\/span><\/a><\/p>\n<\/div>\n

Valuations in China are now higher than those in the U.S. at the height of the dot-com bubble just about any way you slice them. The average Chinese technology stock has a price-to-earnings ratio 41 percent above that of U.S. peers in 2000, while the median valuation is twice as expensive and the market capitalization-weighted average is 12 percent higher, according to data compiled by Bloomberg.<\/p><\/blockquote>\n

Another way to look at it is to compare current valuations around the world:<\/p>\n

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View image on Twitter<\/span><\/a><\/p>\n
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\"View<\/a><\/div>\n<\/div>\n<\/div>\n<\/article>\n
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\u00a0Follow<\/a><\/div>\n<\/div>\n
\"\"<\/span>Joseph Weisenthal<\/span>\u00a0@TheStalwart<\/span><\/a><\/div>\n<\/div>\n
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One of these bars doesn’t belong. http:\/\/www.<\/span>bloomberg.com\/news\/articles\/2015-06-16\/real-cost-of-china-stocks-dwarfs-2007-bubble-as-valuations-jump\u00a0<\/span>\u2026<\/a><\/p>\n