Glen Bradford

Chinese Stock Market Bottoms: What Should U.S. Investors Do?

When you talk about market bottoms, you need to talk about the market PE ratio and discounted cash flows. You can't just show charts. The chinese market has a PE of about 7. Their GDP growth is worst case scenerio of 5% for the next 5 years. Based on this premise, it is hugely undervalued. Also, show charts of mutual fund and hedge fund capital outflows. Note that the Nikkei exchange topped at a PE of 70 and this was retarded. That's why they've been "crashing" for 30 years. Luckily for you, based on this analysis, I think the chinese market has bottomed as well. Also, mention the exchange rate and the fact that china artificially deflates their currency and isn't running a deficit like we are. Good luck. Hope this helps. I like GHII, YGE, SOHU, and EJ.