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Confidence, Confidence, Confidence

|Includes: DSUM, iShares China Large-Cap ETF (FXI), GXC, PEK

Recently I wrote about the significance of confidence to the recovery of European banks. Well, they play a huge part in the Chinese economy also. The Financial Times author Simon Rabinovitch recently took a unique approach to determining whether a potential key economic catalyst, Chinese stimulus measures, will be likely in the future. He examined the actual word "confidence."

Or more specifically, he examined its usage by China's premier, Wen Jiabao. Citing historical examples of a rough correlation between his statements including "confidence" and the unleashing of stimulus measures by the Chinese government, Simon stated that Wen Jiabao's recent statements may point to further stimulus.

This could either be either genius or a ridiculous result of overanticipation of stimulus measures. I'm leaning towards the latter.