January 5, 2007
Fools Rushing in to Chinese Stocks
I wonder how many geniuses are going to get trapped in the FXI here? They must have read in Kiplinger’s or Money magazine that China was one of the best performing stock markets in the world last year and they now want a piece of the action… predictably pathetic behavior.
UPDATE: FXI dropped 4% from the open on about 4.5 times average volume — my 12 readers acted fast. ;-)
Cat: | Time: 7:56 pm (utc+8)
January 5th, 2007 at 9:33 pm
Chairman, thanks for the heads-up on this one from Vietnam, Happy New Year, Good Luck.
January 5th, 2007 at 10:18 pm
Interesting. The investment group I attend is very aggressive on chinese stocks. They do make a good argument, I just never felt warm and fuzzy.
They like CHINA, BIDU, Chinese Telecoms, CLH, LFC.
BMW says china is its biggest market, 250M “middle class”. Whatever that means.
CHL - new subscriber every 1.8s.
To their credit, they have been long china for quite sometime, don’t think these are bandwagon folks.
January 5th, 2007 at 10:26 pm
Dan: yeah, that’s my point, the price you pay matters and the last thing you want to do is buy something because it’s *hot* … I have a problem with that 250MM middle class number … it depends on what you define as middle class, which I guess is around US$5,000 a year in gross income here. I worry about the other billion people who are struggling, not the tiny fraction who have “made it.”
January 5th, 2007 at 11:02 pm
I’d like to make a friendly dissent here. Frissent, as the French like to say. The whole IBD philosophy is built on the idea that people have an irrational fear of buying high and are irrationally attracted to stocks that are “50% off.” So I wouldn’t buy a chart like FXI, but I certainly envy anyone who bot back in November and is holding on.
January 6th, 2007 at 12:08 am
[…] I am with The Chairman on this one. He has seen thousands of these as have I. You have to concede at the very least, that you are not an “asstard” to be booking profuits. […]
January 6th, 2007 at 12:09 am
My wife bought FXI in her IRA not long after I posted about it, Mexico, and Spain. She also bought the Mexican ETF. I put a volatility-based trailing stop on it and it triggered yesterday.
Now is not the time to initiate positions in China stocks, but clearly time to enjoy them and take profits if they come.
January 6th, 2007 at 3:04 am
i bought earlier and sold today. gain and dividend beat a poke in the eye!
January 23rd, 2007 at 1:35 pm
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May 9th, 2007 at 10:41 am
[…] Fools Rushing in to Chinese Stocks I wonder how many geniuses are going to get trapped in the FXI here? They must have read in Kiplinger’s or Money magazine that China was one of the best performing stock markets in the world last year […]