Post deleted by Mat Sklansky
 

Re: I want to go long china
 

At the moment, there doesn't appear to be a full China index based product, but...

Business Week article on foreign ETFs lists FXI (China 25 Index) and PGJ (Chinese companies listed in the US).

Also, you should read Friday's NYT article on the manic Chinese market.

GXC (S&P SPDR China) started trading in March.

CHNX (similar to PGJ) is also slated to start trading at the end of June, so keep an eye out for that.

More interesting reading at ETFTrends China page.

Post deleted by Mat Sklansky
 

Re: I want to go long china
 

There is an ishares china index ETF: link

smells like a bit of a bubble over there with all the taxi drivers and cleaners giving up their jobs and becoming "day traders". Its very reminiscent of what happened in the 99 tech stock bubble.

Post deleted by Mat Sklansky
 

Re: I want to go long china
 

Don't invest in China right now, you will lose your shirt

Post deleted by Mat Sklansky
 

Re: I want to go long china
 

Goldman Sachs, Alan Greenspan, a couple of Asian billionaire investors and high ranking Chinese government authorities have all recently warned about the bubble in Chinese stocks. And yet Chinese stock speculators have ignored their warnings and pushed stocks higher -- even in the face of tightened financial condiitions (increased interest rates, increased banking reserve requirements, and widening the band in which it's currency is allowed to trade). Is it Chinese style irrational exuberance? Or are the Chinese acting rationally? I have a kooky theory.

The Chinese stock market speculators may believe the government will intervene and prevent a major market decline prior to the Olympics. By nearly all accounts, the Chinese government intends to dazzle the international community next year during their visit. The last thing the government wants is a stock market collapse that wipes out the life savings of many of its citizens. So, if the bubble looks like it is starting to unravel, maybe the Chinese speculators think the government will intervene and prop up the market. After agreeing to spend $3 billion to invest in a capitalistic pig like Blackstone, the communist government would be under alot of political pressure to use its reserves to supoort its own equity market if it started a sustained decline. Maybe that's why the Chinese speculators have ignored all the warnings and keep buying.

It's just a kooky theory, who knows.

Re: I want to go long china
 

The market "can" remain irrationally exhuberant for a long time. Greenspan was 3+ years early last time [img]/images/graemlins/wink.gif[/img]

Re: I want to go long china
 

[ QUOTE ]
Why not go long w/ a tight stop/loss, then short the market when it crashes?

[/ QUOTE ]
Because it's not always obvious when it's going to crash. That it's not always obvious, however, ought to be obvious.

[ QUOTE ]
The fundamentals for the country are strong, and the PE ratio's aren't that out of whack with what they should be considering the phenomenal growth that country is going to have.

Even if there are some more one day crashes (like happened recently...though it rebounded strong), the market should go nowhere but up in the next 5, 10, 20+ years.

Care to rebut any of that? Feel free to use more than 5 words this time.


[/ QUOTE ]
You should probably provide a more complete explanation of why you think it will go up if you're going to be picky about why people say it won't. "The PE ratio's [sic] aren't that out of whack with what they should be" isn't really convincing evidence of expected growth. In fact, I'm not really sold on you knowing what "they should be," in the first place.