China's bank reserve requirements

China's central bank today released news that it would raise bank reserve requirements in order to cool off the asset bubbles within the country. The immediate impact was a hit on commodity based currencies and stocks.

Of particular interest is the once member of the Ten Grand Chicago porfolio, Southern Copper (PCU) which dropped 4% on the news. The one thing I've learned over the past few years is to walk away when things are bad, but also when things are good. After sporting a 74% total gain in PCU, it was time to leave. Did I forsee this coming? Absolutely not. In fact, I had banked on China's GDP to exhibit continued growth spurring demand for commodities such as copper. This move by China's central bank may signal further turbulence ahead in the global markets.