Chinese stocks are like the dot-com stocks on during the tech bubble in that they make huge moves up and huge moves down.
The reason I point that out is that the Shanghai index dropped by 6% yesterday and I want investors to understand that what looks like a big drop is actually quite normal.
Plus, the reason for the drop is worries about a deepening U.S. recession and the weak consumer confidence numbers from the University of Michigan last Friday.
More on this topic
(What's this?)
Capitalize on China’s Growth with these dividend stocks
(Dividend Growth Investor, 3/10/10)
Jim Chanos Is Wrong About Investing in China
(Investment U, 3/3/10)
Thinking the Unthinkable: What if China Devalues the Renminbi?
(naked capitalism, 2/18/10)
WHAT CHINESE MALLS TELL US ABOUT THE ECONOMIC REALITY
(THE PRAGMATIC CAPITALIST, 2/22/10)
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