About Me

Retired chief investment officer and former NYSE firm partner with 40 years experience in field as analyst / economist, portfolio manager / trader, and CIO who has superb track record with multi $billion equities and fixed income portfolios. Advanced degrees, CFA. Having done much professional writing as a young guy, I now have a cryptic style. 40 years down on and around The Street confirms: CAVEAT EMPTOR IN SPADES !!!

Friday, February 03, 2017

China Stock Market

It has been little more than a year since I last posted on China. Since then, the economy stabilized
and the bubble induced by official commentary to bull the market had collapsed. China did intervene
in the market to let it down as easily it could, and with fiscal stimulus programs and 10%+ money
M-2 growth, the market made a partial recovery and followed along on up with the US SPX. I
did not trade it despite the 1.35 beta on the GXC China index fund  and stayed close to home
instead. Despite the fact that Trump won the election, the China market rallied along with other
major markets, suggesting that market players are not yet concerned with a US - China con-
frontation on trade. The GXC spdr ETX is reasonable at $70 in a partially washed out market,
but given the elevated beta on the stock has well above average price risk if Trump is not
bluffing and battles China on trade policy. GXC

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