Will China’s Lehman Moment lead to the fall in the markets Worldwide?

 

25^th September 2021

Will China’s Lehman Moment lead to the fall in the markets Worldwide?

Dear Fellow Travelers,

Namaste! The media and the top guys from the finance industry around the world and in India are unanimous about the Chinese companies’ bankruptcies and their effect on global financial markets and banking industry and ultimately on economies of the world. They are worried about the coming time. As an individual investor, I am too small to give my opinion when the stalwarts are talking. Still, I am sharing my views.

Let us look at CHINA first: -

Have you seen any of the TOP guys from the Chinese government coming to the media and sharing their worry about these bankruptcies?

Have you seen the Chinese government is cracking down on Education companies / Real estate companies / Cryptocurrencies? The Chinese economy is going to take a huge hit due to the above crackdown still they are doing the same. This is a more important issue than the bankruptcy of some companies or many companies. With this crackdown, they are killing the winning horses. Why? In fact, thanks to this crackdown kind of attitude they have not provided new finance to their top real estate companies. Chinese banks can easily provide a new line of credit for USD 300 Billion to this group. But they are not. Why?

We have more worried people about CHINA – than the Chinese government!! I recollect the GREAT COMIC WRITER of GUJARATI LITERATURE – SHREE JYOTINDRA DAVE. He had said – when he was born, he was so weak that 6 doctors had predicted that this boy will not leave for more than 6 months. At 60 age he wrote – today all the six doctors are dead but I am still alive. Buffett had said that the market can remain insane longer than you can remain solvent.

The point is – those who are giving their opinion on CHINA are missing the above two points. You need to find out the answers to the above two before you can conclude anything.

What about the MARKETS?

I have observed one funny question over the years when somebody dies – the most often asked question is how did he/she die? When people come to welcome the newborn baby in the family – they never ask how come he or she is born?

Life and market move in a cycle. Those who are born will die and those who die will born again. The same thing is true for the market. The market will move up and down. It was down last year – this year it is up and again it will go down. The market is moving in its own way. It’s not dependent on CHINESE CRACKDOWN or LEHMAN.

Do you think – those who died due to COVID would not have died – had the COVID not come? Do you think – those who have taken 2 shots will not die due to COVID now?

If you think that way – then you have a very high ego and you want to control the World. The faster you come out of this mindset – the better for you.

How NORMAL Minds thinks?

They are full of greed and fear. They wait for the right reasons and logic before they take the right actions. When they are in super profit or super loss and if somebody suggests them to book profit or loss – they will ask for the reasons!! They don’t want to take any proactive decisions.

They operate as if they are not going to DIE any day and they invest with a hidden agenda that their shares should only move up and up only.

What is my personal view?

The market is full of obvious logic and advice. You need to have out-of-the-box thinking on the hidden agenda from the obvious details shared in the media. If you can’t think about them ahead of time – you will be taken for a ride in TEJI after TEJI and MANDI after MANDI.

Think beyond the obvious and take action before the market moves in either direction.

If you need personalised help – you can contact us.

Have a GREAT WEEKEND.

Follow me on Twitter @hiteshmparikh Or on Whatsapp - +91-9869425399.

Live With Passion…Invest With Passion.

Hitesh Parikh.