Thursday

China Crash vs Great Depression | India NIFTY vs China vs 1929 Great Depression

Post a Comment September 9, 2010 – 8:43 am |   | Permalink |  Print This Post |

Some (I think it was Jim Rogers in one of his interviews) have compared the crash in China in 2007 as a great opportunity and buying into China at the height of panic akin to buying into America post 1929 crash. We compare China H Shares vs Dow Jones in 1929:

China H Shares 2007 vs US The Great Depression 1929

RED: China, 2007 GFC

X axis: number of days from peak

Now we add India’s NIFTY (Green)

India NIFTY vs China H Shares vs US Great Depression 1929

India’s NIFTY is now 0.9 from 2007 peak whilst China is at 0.6. As you can see, it is quite different to 1929 in terms of time frame and degree of fall and subsequent recovery.