Clem Chambers, Founder of ADVFN joined us to discuss China, Crude, Greece and market trends.
China heading back to normal?
Starting with China, Chambers advised that he doesn’t mess with the Chinese market. He views it as too unfree, but they’ve had their bubble and bust, and are down another 2% on the overnight session. He believes that there will be more of a gradual correction towards pre bubble normality.
Not your average bear
Looking at the coverage of the Chinese crash, Chambers takes umbrage with how markets moves are often reported., noting that bear markets are not when a market is just down 20%, but exhibiting lower lows and lower highs too.
He adds that there are two types of bear markets – one that crashes 20% and another which has 15% corrections and a progressive trend lower. Chambers notes that two things cause crashes: either a shock, or the market is too overvalued and buyers exit the market. Looking to global markets he fears the latter.
Oil and Greece lows present opportunity
Looking to Oil, Chambers notes his fundamentally driven view that crude is close to the bottom. He believes that we are entering a stage where any dips lower can be seen to be confirming lows. Looking to energy stocks, he feels that with confirmation, there are great buying opportunities ahead. Casting an eye to the reopening of the Greek market limit down some 27% today, Chambers believes that after a couple of days, we may see a good opportunity to get into Greek stocks.