FXI - China and market collapse

[SteveOMS]

ETFs are one of the easier vehicles to short

Steve

[whyherro]

The thing is, I am not sure a target price here makes sense. At this point I am pretty sure the underlying assets are fundamentally overvalued. The issue is that the burgeoning Chinese middle class do not have many outlets for investment. So long as this continues, and the West is infatuated with the prospects of Chinese growth, I think the ETF continues to rise. If, for some reason, the Chinese government relaxed trading rules for its citizens I am almost certain the ETF would plummet.

In this sense there is a structural element supporting the current valuation, and is why I feel like I am trying to time the collapse of the tech market.

[xxThe_Lebowskixx]

i am in the same boat guys. i have big gains in FXI. i don't want to sell though because ill be forced to pay short term tax rate instead of the long term 15% tax rate.

[dc_publius]

I have had a relatively small position in FXI since the beginning of the year. I am still bullish on FXI. I think China will do everything to look good for the Olympics and I plan to increase my position very soon.

However, I am not very happy with the companies the index is composed of. FXI is not represetative of China/Chinese business. I would like to find something that better reflects the manufacturing sector. (It could be an American/Euro company that is tighly linked to China manufacturing) Any suggestions?

I was also thinking of trying to trade FXI. I might... Not sure yet.

[xxThe_Lebowskixx]

its was up 5% yesterday and closed down.

[Badger]

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its was up 5% yesterday and closed down.

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My buddy seemed pretty happy with this. Apparently he doubled his month's earnings yesterday due to this.

[xxThe_Lebowskixx]

up 5.4% today. stock is crazzzzzy