Stanley Druckenmiller: China stock rally could lead full blown economic recovery

The Chinese stock market is up 140% on record volume and breadth after being in a six year down trend. The rally has been against the backdrop of falling GDP growth and concerns about the ability for China to maintain its previously strong trajectory. Stanley Druckenmiller provides the following observations on how he is interpreting the Chinese stockmarket rally. “If it was any other developed country stock market I would tell you, being a market observer, there is a 98% chance China will be in a cyclical boom 6 – 12 months from now. Because it’s China and we don’t know the nature of what we are dealing with relative to normal, mature developed markets I would downgrade that assessment… I’m watching the markets and whenever I’ve seen a stock market explode on record volume and record breadth and move to that degree – like day follows night 6 – 12 months down the road you’re out of a recession and you are into a full blown recovery.” watch the interview: (VIEW LINK)

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