Recent US market rally, in part, is based on growth projections from China’s stimulus. Our analysis of the data from China indicates that stimulus induced Chinese growth may be faltering.
If our analysis is correct, US market may also falter. If US market starts faltering, consider short selling Chinese market. Our favorite vehicle is short sell FXI (iShares FTSE/Xinhua China 25 Index )
… Please click here or the title below to read more.Sentiment in Asia is that this is another gambit on part of North Korea and should have no long term effect. Aggressive investors were buying on dip. The sentiment is an important factor to be considered in any trade per the last post.
… Please click here or the title below to read more.When the markets open in US tomorrow, there may be opportunities arising out of North Korea’s nuclear test. There will be directional opportunities as well as arbitrage opportunities.
If there is over reaction on the downside,this will be an opportunity to buy. If there is very little reaction, there will be an opportunity to short. Vehicles of choice are two closed end funds KF and KEF, and Korea ETF EWY.
Arbitrage opportunities will arise by capturing the short term different price reactions in KF, KEF , EWY and Korea Exchange. Please note that US prices traditionally do not always exactly track local prices in Korea.… Please click here or the title below to read more.