In the previous article on the secrets behind market movements, we highlighted the key message that to make money is essentially buying when it is cheap and selling when it is expensive. However, I believe, myself included, the biggest conundrum now would be should we picking up the stocks that got cheaper or should we continue waiting for this ‘global meltdown’ most people are talking about or hoping for.

China’s Drawdown

Below are 2 important charts that I find crucial in assessing the drawdown in China. While China’s recent drawdown has been huge, however, it is not the biggest compared to others throughout financial history. Even after assessing a well-known metric and a favourite of Buffett – Market Capitalisation to GDP, China is far lower than US and is ......