While the “Don’t Worry, Be Happy” crowd on Wall Street do their usual thing, I’m here to tell you the China rate cut is not a cause for celebration.
The engine that has pulled the world’s economies since the last financial crisis, China, is IMHO far worse shape than most suspect. This rate cut to me is another indication of that.
I’m not a stock trader nor recommend anyone to be. However, before the day is out, I would be short if I was a trader. I would have also greatly lower overall general equity exposure before the final bell rings.
There’s plenty of room in the foxhole with yours truly.