In a late July report to Bespoke Premium clients, we noted that even though the sizzling stock market in China was generally closed to outside investors, US investors still had plenty of (and in some cases superior) options to invest in Chinese stocks through the vast number of Chinese ADRs trading on US exchanges. There are currently over 125 Chinese ADRs that trade on US exchanges, and of those, 58 have market caps of more than $300 million.
Now that the Chinese equity market has stabilized and is back on the upswing, we updated our chart comparing the performance of the Chinese stocks listed locally in China and their US listed peers (ADRs). While locally listed Chinese stocks are still well below their peaks from August, our basket of US listed ADRs remains in a well-defined uptrend and has broken out to new highs for the year.
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The problem is that some of the info is not available for Chinese ADRs. They are not as easy to trade.
But there are some good companies involved that potentially can make very good returns to investors, if you time them right. That is the key to success: market timing.
Take as an example today's big drop in the end of the day, as nvestors were probably looking for an excuse to sell.
However, the Invetrics DJIA index timing signal switched to Short prior to market open today, and warned web site visitors of today's potential drop in the market.
It is up a respectable 64.84% for the year (as of October 20, 2009) and it is free of charge for individual investors at:
http://invetrics.com
Posted by: admin | October 21, 2009 at 05:01 PM