Juggling Dynamite

Alibaba hype notwithstanding, the much forecast surge in household consumption and away from dependence on western exports and state ‘investment’ in the Chinese economy is not working out as bulls had promised.

“Judging by Alibaba’s blowout “Singles Day” sale this week, one could be forgiven for thinking all is well with the Chinese consumer. In fact, evidence is stacking up that shopping carts are increasingly bare.

The troubling implication is that China’s resilient spenders are succumbing to an economic downturn, which until recently has been largely confined to property and heavy industrial activity. Declining investment in these areas was bound to eventually feed through, as people working in those industries earn less. Falling home prices add to the sense of anxiety.”

Read some key stats on actual sales trends here: The Not-so-Mighty-Chinese-Consumer

Danielle was a guest today on Talk Digital Network talking with Jim Goddard about recent trends in the world economy and markets. You can listen to an audio clip of the segment here.

Over the past 8 years, free markets have increasingly been over run by inside traders, price riggers and predatory high frequency machines, in the process, legitimate investors have steadily withdrawn and the volume of shares traded has plunged. Fewer participants mean those buying have had a magnified ability to move prices up, but it also means there have been less and less willing participants with each passing year. Those who have gone along for the ride are taking victory laps and calling it brilliance, but the trick will be trying to find buyers when they look to cash out winnings. This video captures the demise of free markets and the lack of liquidity that today stalks ‘players’ at the table.

Average Trade Size (Shares per Trade) for all NMS Stocks at 10 minute intervals between 9:30 (open) to 16:00 (close) from 2006 through November 12, 2014. Here is a direct video link.