It's Not Just Chinese Daytraders
The Chinese stock market has perhaps become the world's most speculative
stock market. Valuations appear quite extreme relative to fundamentals (see our
report from several weeks ago that compared valuations and fundamentals for 36
countries), and day trading has become the rage.
Many western investors consider themselves too sophisticated to get caught up in
this mania. Don't be so sure.
Savita Subramanian, Senior U.S. Quantitative Strategist, points out in the latest
issue of the "ADR Performance Monitor" that the May performance of Chinese
ADRs basically doubled the similar performance of the local Chinese market.
Although these indices differ in construction, it may be the case that Chinese
mania is stronger in the US than it is in China!
china mania
Started by
Tor
, Jun 14 2007 07:55 AM
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#1
Posted 14 June 2007 - 07:55 AM
Observer
The future is 90% present and 10% vision.
The future is 90% present and 10% vision.