Caught Fast Money last night saw Tim Seymour's comments about China and how it's beginning to look like China will be surpassing the US within our lifetime as the dominant economic power. Some data was released recently that reported that China has overtaken Japan.
This is a no brainer but just wanted to share some stocks I'm watching and waiting to get into with some Chinese real estate exposure: EJ & TAO
I'll be watching these on any major pullback to their 20SMA or even better 50EMA and looking to get some options exposure.
http://www.cnbc.com/id/31945189
The only way I would play China is through an ETF. I would look at the FXI. Only because they don't have the same standards that we have here in the US. Or I might also play the ADR's as they follow our reporting standards.
ReplyDeleteLOL I don't want to bring politics into play but I don't the world has much confidence in our reporting standards either.
ReplyDeleteI agree that China is the inevitable world economic leader, the only question is how long? Nobody truly knows. I also agree with the fear of their reporting standards. I understand the US has had many black eyes (Enron, Worldcom, Madoff, etc), but it's also possible that all of China is operating on fudged numbers. I would view them just like every other trade I make, risky!!! I would not allocate X percent of my portfolio in long positions in the name of diversification.
ReplyDeleteI would bet if you saw money start flowing into Chinese markets and equities and out of the US that fear you're talking about would turn to greed...
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