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Fri12152017

Last updateSat, 29 Jul 2017 12am

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Cheapest Chinese Stocks Since 1997

The Shanghai Composite Index currently trades at 11.4 times the earnings of China’s biggest companies, the lowest level since at least 1997.  During the past decade, the average was 24 and in Year 2007, it was 46.  Meanwhile, MSCI Emerging Market Index is now valued at 12.6 times profit, while the Bovespa index in Brazil, the second-biggest emerging market after China, trades for 18.8 times.

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Hedge Funds Missing in this Rally!

Since the 2012-06-01 to 2012-10-05, MSCI World has gained almost 14%!  But according to International Strategy & Investment Group (ISI), the ratio of bullish to bearish bets among professional speculators fell last week (end of September) to 46.5 from 48.1 in late August, below the 10-year average of 50.2.

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How high would the QE3 drive this rally?

With the launched of QE3, the additional liquidities in the market is likely to drive up risky assets – such as equities once again.  Would it be the fourth “Bernanke Wave”?  How long would the rally last?

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Why are the markets so calm?

The sharp market swings that shook investors a few months ago have become mere ripples that is despite the pitfalls ahead – the US Fiscal Cliff, the risk of a hard landing in China and the unresolved eurozone debt crisis.

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Sell in May and come back on St Leger day

Sell in May and go away; don’t come back until St Leger Day.”  - is one of the oldest trading strategy which according to some was originated from traders in the City of London in the 1930s.

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