Back at the end of January 2007, I wrote this post:

“I’ve lined up the price of the Shanghai Composite to correspond with the peak of the Internet bubble (as represented by the IIX). When bubbles burst it ain’t pretty, and people who are paying the wrong price for Chinese stocks are going to learn an expensive lesson.”

After I wrote that, the Shanghai Composite proceeded to rise straight up, doubling in the following nine months. Oops! But as we all know, the Chinese stock market topped in October, and now the comparison with the old Internet bubble may be on target.