Chinese stocks are believed to drop 9 percent again in the next four to five days. The losses could be as bad as the losses that occurred during U.S. exchanges in the Wall Street crash of 1929, according to Thomas DeMark, founder and CEO of DeMark Analytics.
DeMark reports that the upheaval on the Shanghai Composite Index is on a path to destruction that resembles the crashes of 1987 and 2001. However, it could plummet even further according to DeMark. He predicted that the Chinese stocks would drop an additional 14 percent within three weeks in late July, which resembles the stock market crash of 1929.(1)
“That’s what could happen,” he stated to CNBC. “In 1929, the market declined 50.6 percent. So that was a warning that there was something more serious in the market breakdown.”(1)
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