China Mega-trend Stocks Stealth Bull Market Update, SSEC Up 47%

Linked with Es wird erhebliche Verteilungskonflikte geben (I translate: upcoming important battles for distributions), and with Is the Fed Juicing the Stock Market?

Published on Market Oracle, by Nadeem_Walayat, June 28, 2009.

(First my comment: Since years I suspect that the Mega-Financial Lobby (you know, the real rainmakers of this planet /or the Hydra) are transfering their main investment to China – means make China their financial working Headquarter, belonging to many hidden signs and also to predictions mostly known as conjuration theories). Belonging to this logic, since years they voluntarly have begun to destroy America (why? Answer: to eliminate the concurrence of their ‘Old Headquarter’ to their new working place):

  • first by accumulating a huge deficit,
  • second by the Twin Tower mess of 9/11 with its war against Muslims and co., to tell only the 2 most obvious events,
  • Now they invest into China – and in 10 years, when geopolitical realities make the new Chinese version of the world order begin to work – the rest of the planet could be submitted to this known Chinese version of Human Rights, the one dominators love and always need.

Do you see a better way to submit again all these westerner Intellectuals, Hippies, ‘Terrorists’?

After having suggested their version of safety to all small poor lost hungry frightened people? Look, if I should become the dominant dictator of this planet, I would act exactly like that) ... And now the real stock market article:

Whilst many readers have benefited from my series of analysis on the stocks stealth bull market of the past 4 months on the western markets. However, back at the start of September 2008 I gave the first of a series of accumulating buy signals on a major world market which was for China at SSEC 2,000 or lower, which had followed a year of bearish analysis as of October 2007 at above SSEC 6,000 and therefore subsequently reflected up on accumulating into a meg-trend at less than 1/3rd the level of a year earlier.

Since the stated accumulation level of 2,000 on the SSEC the market has risen to 2,940 which represents a gain of 47% in less than 9 months. Whilst many ‘perma-bears’ continue to correctly point to the collapse in world trade i.e. exports down 40%, imports down 25%. However the performance of the chinese economy and stock market shows that China has offset the collapse in world trade by means of a huge stimulus package of $600 billion so as to prevent a downward economic spiral from taking hold.

Those that continue to be negative on China’s prospects due to the crash in exports, FAIL TO RECOGNISE THE FACT that China is sitting on more than $2 trillion of reserves that despite the economic crisis continues to grow by $400 billion per year. Therefore the $600 billion stimulus whilst huge by western standards is NOT FINANCED by debt but by CASH-FLOW, which is the fatal mistake countries such as Britain are making, i.e. borrowing for consumption.

Now that China has gotten a taste for spending spree’s, imagine a China that can sustain annual economic growth rates of at least 7% and more probably averaging more than 10% per annum for the next TEN YEARS! ALL on the basis of a STRONG annual cash-flow taking up the slack whenever there is a blip in the global economy. This implies that the outlook for Chinese stocks remains immensely attractive even after the 47% run up, which implies that it can no longer be really called a stealth bull market, but rather a bull market proper that investors should take seriously note of …

… Apart from the strong outlook of domestic sectors right across the board such as construction, retail and technology, the China factor impacts on the other global mega-trends that remain as oft mentioned over the past 9 months of the energy sector, agricultural commodities and tek stocks as well as numerous other China growth impacted sectors such as tourism mentioned earlier.

I continue to view ANY sell-off in Chinese stocks due to seasonal factors as a further opportunity to accumulate more in an economy that has far more sound fundamentals than many other countries especially those in the west that are sitting on soon to be exploding debt time bombs with all of the associated consequences of lagging economic growth and thus under performance of stock prices.

Your China-centric mega-trends INVESTING analyst. (full text).

Link: More on economy – this month on this blog.

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