SYE - Weekly Commentary: Uncertainty

• Analysts are downplaying the significance of July’s slowdown, expecting a seasonal pick up and a boost from last month’s reduction in bank reserve requirements.
• From the perspective of a determined Beijing, coupled with heightened Credit stress, July’s weak data is likely sending a warning.
• There is great Uncertainty associated with Chinese officials, citizens, bankers, and corporate managements having no experience with the downside of Credit and asset Bubbles.
• Markets are said to hate Uncertainty. Yet stock prices rise to unprecedented heights in the face of myriad extraordinary uncertainties.

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