Stock markets around the world are plunging. Investors are panicking. Media is going nuts. What’s really going on in China? How bad is it? Show us the numbers!


As if we’ve ever known what’s really going on in China. Like we’ve ever understood how thousands of macro economic drivers correlate in real-time and then used this information, with a surgeon’s accuracy, to compute solid “fair value” for every investment. Of course not! That’s not human nature in a bull market, mainly because it’s not possible but also because it’s simply no fun.

We were just living in peace in Happy Nation, where no one asked too many complicated questions. However, every once in a while, the complicated questions are eventually asked, resulting in a furious bear tearing the market to pieces. In this case, the questions were China-based. It might as well have been the insane pursuit for inflation (central banks printing funny-money) or the super-low oil prices or…whatever. Regardless of reason, we just lost some of our (mainly irrational) risk appetite.

Anyways, we choose to view the current market plunge from the bright side. The “get-greedy-when-others-are-fearful-theorem” is always applicable. Furthermore, the tech hype has created a senseless view on the value of decently earned money so it’s about time for a majority of the valuations to plummet.

China is just a catalyst for correcting the price on risk. The correction was bound to happen due to excessive cheap money slushing around in the system. As you would expect, we never had the faintest idea of when a market correction like this would happen – and that sucks!