Warnings come too late
American and European market analysts are sounding warnings about the potential for a double-dip market development. These warnings are already too late as markets have developed the first stages of the retreat below consolidation areas. Market behavior again leads the conclusions of some economists.
Investors are interested in the potential limits of any market dip. Is this a return to the March 2009 lows in the Dow or just a smaller retreat? The potential answers lie outside the analysis of Western markets.
China leads world market development. China was the first major economy to begin reducing stimulus packages implemented during the global financial crisis. China leads the way in evaluating the potential impact of this process. In particular, the Shanghai Index leads the world in the behavior of financial markets. The Shanghai market is further advanced along the potential development of a double dip.