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Where is the Bull Market, in US, well everyone now knows that it’s in China. I read everyday how stellar is the performance of all the china stocks, I thought let me revisit a post that I mentioned on April 23, 2007 (Where is the bull market, US, think again) Here is an update of the key 4 tickers I mentioned for play:
- FXI (Everyone knows it now) up +75% since then.
- EEB (BRIC play) up +49%
- EWS (Singapore) up +17.5%
- IFN (India) up + 32.5%
In comparison, Dow is only up +8.5% and S&P500 a mere +4.5% (since April 23, 2007). There is more to it. It’s the C-factor (I call it for China factor) that’s driving every body nuts. Just check out any Chinese IPO, regardless whether or not it makes good sum of money, it doubles/triples fairly quickly. I have cautiously been in-n-out from China counters to take advantage of rally. SNP, EJ, RCH, are just few to name. LFT is the next China IPO. Is there a bubble, of course, but hey who cares as long as you know what you are doing.
I have never came across anything like this for long time, did you? Hang Seng index is up nearly 50% in little less than 7wks. In fact most of Asia is going crazy for Chinese stocks, anything that anyone can get hold of as long as it generates 50% of its revenue from China (as per new regulations in China, two new funds have started that can buy stakes in companies having more than 50% revenue in China, the scheme is called Qualified Domestic Institutional Investor (QDII)). With its massive reserves and dollar on decline, C-factor is major force to reckon with.
Markets are flirting with all time highs, a lot of opportunities(just browse through lotsa blogs), trade with a plan and trade profitably (WAG and GRMN have been beaten down badly, I expect a short lived technical rebound)
Profitable trading, OP