John Gaats

Why I'm Closing Some Asian Positions

I sold my China holding (FXI) not because something had changed in China. But because the bet that it offers a safe haven away from credit cruch and subprime was wrong. We punish ADRs harder here. My PKX holding is crying now. I don't want to this one on the same day. In the last ten days, my ADRs perform worse than big financials.

Shanghai Rallies, Recoups Most of Thursday's Drop

Is the roller coaster over? The heavy handedness of the governement is indeed troubling.

CIBC Warns On Chinese Bubble

I have not read the report. But there are considerable misinformation contained in your quote. I wonder how a reputable firm allows that kind of gossip dressed up as corporate report. The best conclusion I can have is that CIBC trusted someone without real understanding of China to cover that market. I also doubt if there is any relevence to FXI and PGJ.

Morgan Stanley China A Share Fund: A Contrarian Buy Speculation

CAF is definitely a long term buy.

China's Stock Mania: The End is Near

It is hard to say any stock market that is free of stock mania. From time to time. From big mania to small mania. There is also selective chasing within the mania. In general, they over value their stocks because they don't have access to our stocks. In our markets, Asian ADRs are generally under valued. For example, DCX is more popular than TM. I call this a buyout mania.

Having said that, I sensed fear in the market these days. Good stocks are under valued. We have witnessed big drop from MHS to WGS to POT. The drop happen when they report good earnings. I call this fear mania.

The long and short is that we have our mania and they have theirs. I don't know whats going to happen when investors seek mania free. When we exagerate Chinese mania. Don't forget our mania. Stock markets are never good reflectors of real economy. Stock related blogs are even less. I hope we don't try to hurt others and end up hurting our own investments.

Get Ready for the Chinese Bubble to Burst

Can you be specific on when the bublle is going to burst. Or how it is going to happen? I know that Chinese investors are insane. But all stock investors are insane. Can they become sane one day and bubble burst? My own experience is that the bursting itself is quite insane. Can you justify nasdaq falls from 4000 to 2000 all of sudden. Can sane people do it in a sane manner?
Other than passing rumors, can you present your own evidences. I think it is cheap to distribute rumors like this in New York when most people do not understand China