Main Menu

VIDEO

Every market in the world crashed in October of 1929 not just the US, if China’s market crashes in 2015 every market in the world follows. History repeats itself

014cdc5f-d3fd-4c64-977b-c9134e852f77

 

Chinese stocks are set to fall another 9 percent in the next four or five days and are in danger of replicating the hefty losses seen in the U.S. exchanges in the Wall Street crash of 1929, an analyst has told CNBC.

Thomas DeMark, founder and CEO of DeMark Analytics, told CNBC Friday that the current turmoil on the Shanghai Composite index is already on course to echo the crash of 1987 and 2001, but could still fall even lower.

“That’s what could happen,” DeMark said, detailing the technical analysis that his company use to predict stock market declines.

“In 1929, the market declined 50.6 percent. So that was a warning that there was something more serious in the market breakdown.”

DeMark added that his company turned bearish on China on June 12, just as the market reached a top and has – more or less – correctly predicted the downturn of 38 percent that has occurred since

Chinese market mirroring 1929 crash: Analyst