James Lewis

Maoist Conflict Threatens Indian Stocks

India needs to reform and develop its corruption just as other neighbours in the area have to. India however has at its source an idealogical and moral ethic structure that is peaceful. I really hope that more devote Hindus can penetrate the government and take India on the path the world needs. After all a strong, safe equal and developed India is what the world, especially the East needs.

Mr Shah assesment of the Maoists motivations, resource origin and support seems to be very accurate. And I hope that India can use a two-toned approach whereby it resolves the problems that are causing disccontent with policy deicisions (ie making free zones that foreign companies can benefit from to develop local area), whilst at the same time sending 50 000 troops to show force. The deployment of the troops and making it clear policy will be focussed to alleviate the suffering will break the Maoist stronghold.

The question is though, can something like this occur with the very inefficient beaucracy and squabling.

Five Ways to Invest in China and India

RSI/Stochastics are oscillating indicators not trending indictaors. They can not be used to work out bottoms of trending environments, ie in the one we are in currently in Shanghai. Using Rsi/Stochastics for this means is very very dangerous. Take alook at the extreme overbought readings on shanghai market daily/weekly for the past three years and you'll see what I am saying.

Long Term - I belive we are in a good place here to start buying.
I am waiting for 3000 because I have not seen a capitulation. Also the H-shares/A shares premium is still way too high. As the market went from 1000 - 6000, you need to use LOG charts which changes retracement levels anyway.

If you are dying to get back into the Chinese Market or want to trade it long-term and want to buy now. I would suggest looking at fundamentals of chinese companies listed in Hong Kong/Singapore.