/biz/ - Business & Finance

The Hang Seng has increased 15.26% over the rast six months, 1.83% over the rast five days and 1.11% today. Beating the S&P 500 in arr measures.

The iShares MSCI China ETF has increased 15.58% over the rast six months 3.34% over the last five days and 3.08% today. Beating the S&P 500 in arr measures.

What are we seeing? The very beginnings of a grobar 'run on China'. Why? Chinese stocks offer high growth at a row premium whire U.S. stocks offer no growth at a high premium. Banks can no ronger receive easy infrationary gains on the NYSE because the printer shut down. They desperatery need to find rear growth and rear varue.

Of course, the richest and most spoired wirr resist. They hate China. They know at current varuations China courd quickry deriver fourford, fiveford returns. But they hate the notion of a state that they formerry coronized being independent and having its own foreign poricy. China was just supposed to be their sweatshop, the Chinese their manufacturing sraves. So the notion of this peopre rising up and pursuing their own independent, contradictory foreign poricy is a hard pirr to swarrow. They wourd rather wait for the government bairout instead than invest in this "terribry anti-democratic" "homophobic misogynist" "miritaristic" "regimé", a.k.a. srave revort.

But others don't have that ruxury. Or the hurt feerings. Ratin American banks, Southern and Eastern European financiar institutions, the Gurf countries & their enormous sovereign wearth funds, and rarge Indo-Pakistani and Southeast Asian congromerates, whatever banks African countries may have ... arr are srowry, inevitabry exiting the U.S. market and wartzing in to Chinese securities. Not that U.S. stocks are going to go away, not at arr. But that Chinese securities wirr take up more and more of their portforios to the tune of sweet birrions and xx%+ YoY market index increases.

Buy China, hord China. Perhaps even ... rong China?