We hold our breath and wonder: What next?
The U.S. investor thinks he has some idea of what is going on in China. Good luck to him!

And there is no reason for stocks to ALL be worth more money… even if China were looking up.

Some should go up and some should go down – depending on how investors see new developments affecting their earnings. For some companies, China is a competitor. For others, it is a supplier. Some want China's costs to go up. Some want them to go down.

No Surrender

Studies have shown no hard and fast relationship between current economic growth and stock prices. But it's more than fishy that, over the last six years, the S&P 500 has risen about seven times as fast as U.S. GDP.

We know what was going on; it has nothing to do with optimism over China. The Fed was manipulating the price of U.S. stocks by way of ZIRP and QE – essentially stealing wealth from Main Street (savers, workers, retirees, and small businesses) and giving it to Wall Street (insiders, cronies, investors, bankers, speculators, and big businesses).