Armagedon

China Stocks: April Was Kind

How can a government propping induced rally be viewed as a fundamental reason to buy? Chinese stocks are incredibly expensive with 40x and 50x P/E. The implied yield is 2% they would literally have to be safer than US Treasuries or the individual stocks would have to guarantee huge increases in sustainable growth. Please remember these are stocks not the Chinese economy. No company can grow into infinity at 10%. Furthermore, the Chinese economy is 20% export and 40% foreign direct investment. With Europe and the US heading to recession, what will happen to that 60% of the economy.