Excerpt from MarketWatch:
Another bear growls at China
By Peter Brimelow, MarketWatch
December 5, 2007
NEW YORK (MarketWatch)—Is a China crash coming? The top-performing China letter continues cautious.
Recently, I reported that the top-performing letter over the past 12 months, according to the Hulbert Financial Digest, had finally gone bearish on China. See Nov. 19 column
Cabot’s China and Emerging Markets Report (CCEMR) is up 84.6% over the past 12 months, vs. 7.51% for the dividend-reinvested Dow Jones Wilshire 5000. Over the past five years, it’s gained 28.58% annualized vs. 12.85% for the total-return DJ Wilshire.
CCEMR went bearish on China because of its proprietary technical indicators... and is still bearish. Its just-arrived December issue begins: “Chinese stocks are in a downtrend, which has triggered a selling signal from our Cabot China-Timer. We take these signals seriously, and have reduced the portfolio’s holdings to just five stocks (with only one, Suntech Power Holdings C. Ltd , rated BUY) and one on the WATCH list. And we may be making more adjustments in the near future; we’ll let the individual stocks make that decision for us.”
The Hulbert Financial Digest’s merciless methodology doesn’t recognize holds—or “WATCH"—so it counts only Suntech in CCEMR’s portfolio.More News about Cabot
More information on Cabot China & Emerging Markets Report
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