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Where is the bull, in US, think again

Published on April 23, 2007

Where is the bull, in US, think again

April 23, 2007

So you thought US was a big bull, probably the biggest big bull market. Think again. Here are few examples for you to consider:

China– It’s like a colied spring. There is a little presure and it drops to 7%. The moment pressure is off, it bounces even higher. Feb’07 and last week are testimony to that.China SSE

1000s points doesn’t seem to deter the investors in china markets. Here is last one year chart, tripling in value, in roughly six months time, is just around the corner.

FXI vs US Indices

There are several ways to play China, most popular being investment via FXI (iShares FTSE/Xinhua China 25 Index). Though it didn’t have as stellar a performance as the index itself but it surely has done better vs all the 3 US stock market indices.

 

STI vs USSingapore– Known as one of the safest places to invest your money in Asia (probably worldwide). Strait Times Index experienced no less than stellar performance, far outpacing key US stock indices. Here is a chart of comparison vs Dow, Nasdaq and S&P500.

EWS vs STIEWS is a good proxy to play Singapore market. Here is a comparison of EWS vis-a-vis Strait Times Index.

 

Though Mumbai stock market didn’t show great performance so far, but if you are looking for India play, IFN may provide a good proxy to play Indian market.

How about best of the breed, want to play Brazil, Russia, India and China all into one but don’t want to play with too much of volaitlity, think of EEB Claymore/BNY BRIC (EEB). The results are no as stellar as individual stocks, but it has also outperformed US indices. EEB vs US

There are many more, so while the headlines are focused for US markets, the action maybe somewhere else. I would look towards where the hot money is flowing which seem to indicate that there are shifts in market dynamics.

So next time, you are looking for bulls, it is not necessarily charging in the next street, rather it might be flying at places ocean apart.

Stay tuned.

Profitable trading, OptionPundit

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