[sgbuffett]

real reason for huge fall unknown. market sentiment is very weak. market expecting up before open as us up a lot. then on pre market start to have a lot of dump . market open down then the rest is trigger. long cut lost. shorts add on etc. today should have some kind of a technical recovery

Actually the risk is very real.

Even before Monday after watching the CCP congress on Sunday morning, I issue an order to switch  one China unit trust to a global unit trust.  This is before the massive selloff on Monday. Unfortunately the switch can only be executed on Monday. I switch out half earlier this year.

My point is the selloff is not entirely sentiment but logic.

1. XI advanced the timeline and urgency on Taiwan. Remember what happened in Russia when they invaded Ukraine the stocks collapse and foreigners not allowed to sell.
Even if you don't believe will happen soon the risk is high.

2. Many members of the politburo and standing Committee who are able to reasonably negotiate and strike deals with US and Europe taken out. This can lead to more trade tensions like the chip ban which is devastating to its tech industry.

3. There is a study that shows Xi main goal is nationalism and internal control not economy. Many of his policies like zero covid is harmful to economy.

I think because of sharp selloff there may be a bounce bout those thinking of investing long term have to mind the risk.