In moments like these, we desperately seek a narrative that helps us create order out of chaos so as to avoid cognitive dissonance. We create correlations where none exist and are susceptible to mistaking coincidence for causation.
Since China's latest equity wobble is once again being blamed for the global equity selloff, I thought it helpful to inject a few facts about the historical connection between Chinese equity markets and the S&P 500.
Let's begin with the correlations between SHCOMP and SPX since 1996.
Seedlings are timely ideas that are percolating, but not yet ready for publication on their own.