April 27, 2010

Chinese Stocks Keep Selling Off. A Warning Signal?

Stocks in China fell 2.3 percent and are now off 11% YTD:

"Despite touting the growth of China as the harbinger and a pillar of the global recovery as the rally began in 2009 U.S. investors are now firmly ignoring any action outside of U.S. borders as investors become enveloped in a cloud of “better than expected” earnings and economic data. Meanwhile, the Eurozone continues to slowly unravel in sovereign debt fears and China’s equity markets remain deeply in negative territory for the year. As we’ve noted before, Chinese equities served as a leading indicator into and out of the recession."

in The Pragmatic Capitalist

Is this a warning signal for global investors?

Related ETF`s: iShares MSCI Emerging Markets Indx (ETF), iShares FTSE/Xinhua China 25 Index (ETF)

No comments: