Posted
Feb 07 2008, 09:13 AM
by
Richard Schwartz
Boy, during China’s recent sharp pullback of -29% off its October 16th, 2007 top, investors have been anxiously waiting to jump back on board. Even well known, long term investor Jim Rogers, who’s very bearish on America now, has started saying he’s looking to buy more shares in China after this dip. He owns some Chinese shares but hasn’t bought more for some time. Well, investors bought China heavily on Monday fueling a +8% surge. Quite a “flashy-splashy” rally, so typical here in the US during bear markets. Why not the same technical and psychological phenomenon happening in China? Where the motto today is: “To be rich is glorious.” One has to figure greed reigns supreme in Chinese investor psychology today and investors will pile in as soon as someone says “bottom.” Schwartz View: I would think Monday’s big rally is more evidence that China’s stock market has entered a bear market.