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Strategies & Market Trends : Waiting for the big Kahuna

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To: clochard who wrote (89799)8/19/2009 3:56:33 PM
From: Real Man  Read Replies (1) of 94695
 
Chinese stocks went down in 2000-2005, while the country was
growing 10% a year. Maybe
stocks just caught up. 9 years 10% a year growth equals to 2.36
multiple. So, in 2000 terms and per revenue China is trading at
1K, which seems pretty low. Maybe it was just the birth of
Chinese bull in 2005-2006, not a bubble. Granted, the bull
advance from 2005 lows was very exuberant, but the Chinese
economy is growing at much faster rate than the US economy,
and not all exuberant stock market advances constitute
a bubble. For example, gold miner index HUI soared 15-fold
from 35 to 500 in 2001-2007, but no bear called that a gold
bubble. -g-

finance.yahoo.com
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