China Mania - Wild swings in US traded stocks Message Board

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Strategies & Market Trends : China Mania - Wild swings in US traded stocks

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To: peter michaelson who wrote (2)	10/7/2007 1:44:51 AM
From: Kiss of Death	Read Replies (1) of 10

Peter, I have been following some international stocks for a few months now and I have a theory on the rise in the stocks you mention...I will try to explain my theory going from a macro view down to finish at the specific stocks you speak of...Here I go... First, I believe there is a huge pool of cash that I have been following for 10+ years that is always moving from investment theme to investment theme looking for what will be hot next-it comes from the major brokerage/investment banks & pension funds/clients and it hit the nasdaq hard 10+ years ago in the form of anything technology related was bought furiously for years, it moved on to real estate when the fed cut rates to record low numbers and now it has come full circle (almost) to the stock market-with the exception being foreign stocks taking the place of the tech related issues bought previously...and the popular theme this time around is the BRIC countries (brazil, russia, india, china) with china showing perhaps the greatest combination of GDP growth and stability/safety as far as the market/government relates to the equation...so the obvious answer to the obvious theme is any US listed stock with the name CHINA being part of the company name is the low hanging fruit easy for picking first, that would likely be followed by more research into the harder to find chinese/US listed companies (of which some I own-FSIN, SDTH, NOEC to name 3)...when they get their fix of the C in BRIC I would assume they will move in a herd mentality to the next hot-at-the-moment theme-but will it be the B the R or the I, we will all find out when the time comes if we have our eyes open...and if you ride the wave in the early innings it will be well worth the ride...I think the fact that china has 0 capital gains tax on stocks-or real estate for that matter-certainly steered the money there first(all else being equal why not)but actually all else is not equal-china is on fire 10% gdp growth compared to 1% US next year-china is a defensive play in terms of us economy going south possibly plus a high growth area at the same time...So, let's see what india can do to steal the limelight...it is funny how computers, the internet, and instant transparency & information exchange have affected us all into a herd-like mentality from the money managers with $Billions to some guy with an online acct and a few bucks in it...would I have ever invested in china without the net-hahaha...forget china-I probably wouldn't have invested anywhere... LAZY

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