Market Round Up: That Was The Week That Was 😖 China Rich List 💰
1. That was the week that was
Some week! Markets everywhere slid and even the S&P 500 saw its longest decline since 2016. With the VIX volatility index surging ahead of all the selloff there’s a hint of a further meltdown, ruining chances of a restful weekend for investors.
With stocks taking a battering from earnings worries and rising government bond yields, it’s looking like much more than merely a market correction. Going forward, with the Fed’s normalisation process firmly on track, consumer sentiment could start to pare back as money in their pockets begins to tighten. Meanwhile the spectre of a protracted trade war with China may also weigh more prominently on expectations of future economic conditions. And with credit agency, Moody’s, triple A rating likely to stand firm in its update today, some will be looking for any hint
that President Trump’s government spend unbuckling is threatening the country’s future credit health.
Elsewhere, every market is wrapping itself as best it can in order to avoid catching the fiscal cold! So far, contagion is proving impossible to avoid!
2. China rich list not so rich
No coincidence, but the typhoon season has seen many Chinese tycoons fall off the latest Hurun Rich List. In fact the blame is being placed squarely on the Sino-U.S. spat.
According to the latest report, 456 businessmen dropped out of a total of 2,130 a year ago. That’s a 21% fallout. The list includes people with more than 2 billion yuan ($290 million) in net worth. Still, the number of Chinese making the rich list is up nearly 90% from five years ago. When the rich list was first started there were only eight people with more than 2 billion yuan on the list.
Whilst the number of rich Chinese has grown overall, evidence shows that wealth has become more concentrated with the top 10 rich people accounting for 10% of the overall wealth. Top of the list after a four year absence is Alibaba’s Jack Ma with a net worth of $39 billion – up $10 billion thanks to the rise in valuation of his Ant Financial payments business.
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.