Dave Malhotra

China: Too Much, Too Fast

Is it really a bubble? I am starting to have my doubts. FXI has a P/E of 17.86. The Dow Jones Industrials P/E is 17.7. The stocks that comprise FXI are probably growing faster than the ones in the DJI so FXI probably deserves a higher P/E. I think I may have made a huge mistake buying into the bubble thesis.

China: Too Much, Too Fast

I've been shorting FXI and lately have been getting my head handed to me. I agree the market is overheated but its irrationality might outlast my solvency. Stories like these make me extermely nervous:

www.chinadaily.com.cn/...
www.chinadaily.com.cn/...

What is it gonna take to pop this thing?