Quick Comment – China Intervenes Again, Pushing Markets Higher

While the U.S. markets were closed for the Labor Day Holiday, China’s central bank was once again busy.  In an effort to support Chinese stock prices that have plummeted over the past few months, the People’s Bank of China once again implemented a sizable stock-buying program, reversing intraday losses of -2.0% and finishing the session +2.9%.  That’s a big turnaround! Our best estimate is that China’s central bank has already pumped more than $230 billion into their markets, working to support prices from falling further as they work to engineer slower, more sustainable economic growth.

We’ve been saying for a while that without more stimulus, global markets will have a hard time moving higher.  And today’s action is proof positive.  We continue to see negative trends everywhere, and while today’s bounce is certainly meaningful it isn’t yet enough to change our significantly defensive cash position.

By | 2016-01-07T12:03:39+00:00 September 8th, 2015|Market and Portfolio Commentary, Quick Comment|Comments Off on Quick Comment – China Intervenes Again, Pushing Markets Higher

About the Author:

Mark’s commitment to objective, independent wealth management led him to establish The Appleton Group LLC in April of 2002. With over 19 years of experience in the financial services industry, Mark serves as portfolio manager for our private client group, and co-manages all assets held in our suite of portfolio offerings. His responsibilities include risk analysis, asset allocation, market research, and institutional client development. Mark also serves as both Principal and CEO of The Appleton Group LLC. He earned his Accredited Investment Fiduciary (AIF) designation in 2016