Few countries trade with so much volatility in investor sentiment as China. Investors are manic about watching economic reports from the world’s second largest economy, and the slightest change in statistics can mean a plunge in sentiment. Shares trading on the Shanghai Stock Exchange are up 74% over the last ten years, but the long-term note masks some spectacular ups and downs over shorter periods. The index lost 28% of its value over the last nine months of 2011. And who can forget the meteoric boom over the year to June 2015 when the market surged 140%? #-ad_banner-#Investors have once… Read More
Few countries trade with so much volatility in investor sentiment as China. Investors are manic about watching economic reports from the world’s second largest economy, and the slightest change in statistics can mean a plunge in sentiment. Shares trading on the Shanghai Stock Exchange are up 74% over the last ten years, but the long-term note masks some spectacular ups and downs over shorter periods. The index lost 28% of its value over the last nine months of 2011. And who can forget the meteoric boom over the year to June 2015 when the market surged 140%? #-ad_banner-#Investors have once again abandoned shares of Chinese companies despite strong economic fundamentals and valuation. I’ve already put together two trades on the theme for a gain of 54% and 45% in less than three months’ time. Now I’m going for the long-term trade on China for even stronger gains as fundamentals come back to drive shares higher. Recent Economic Reports Have Investors Fleeing The release of three economic reports late May renewed fears of a hard landing for the Chinese economy. The official May manufacturing PMI was unchanged from April at 50.1 to mark the third month just barely above the… Read More