China, oil and the Fed: is this a bump in the road, or something more serious?
The old adage was that if the market had a problem, you sold the market and bought the problem. The market could only go up if the problem was solved and you made the most money from solving the problem. Governments, however, have rather turned this on its head. Ever since Greenspan bought into the S&P in 1987 and then the HKMA successfully bought 10% of the Hong Kong blue chips in 1998 in the Asian crisis, governments have seen fit to change the adage to, ‘if the market’s got a problem, buy the market!’
We are now watching this being performed on a larger screen and entirely in the public eye with the Chinese authorities buying everything.