China, Valuation Charts and Recession Watch Charts

China, Valuation Charts and Recession Watch Charts

January 8, 2016
By Steve Blumenthal

China marked its currency lower once again yesterday.  That makes eight days in a row they lowered the yuan.  Last August, they devalued the yuan and that sent global equity markets into a dive.  As Yogi Berra would say, “It’s déjà vu all over again.”

For many years, the yuan had been pegged to the dollar.  The Fed’s move to raise interest rates not only strengthens the dollar versus most every other global currency, it also strengthens the yuan for the yuan is largely pegged to the dollar.

China is trying to escape the Fed effect and they are shocking the...