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From The Outside In - China's Stock Slump

Friday, September 4, 2009, 12:03 AM
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In a podcast in February of 2009 before the "big plunge," I related a concept that I call "from the outside in."  Basically this theory holds that when trouble starts in financial markets, it begins in the periphery with the weaker markets, before spreading to the center.

At the time, I was deeply uncomfortable with what I saw in several European markets, as well as India's.

This time?

China has had a particularly rough August, although September has seen a modest recovery, with the first three days of the month almost covering the territory lost on the final two.

 

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