Apparently Chinese Investors Don't Believe in the True Power of Eight!
Market Alert! 2008-08-08
Given that Chinese believe today is the luckiest day of the century, you would have expected stocks in China to rally today. So much for that, they fell to a new 52-week low, with the Shanghai Composite Index now sitting at 2600!
Why is today supposed to be so lucky? Well, putting the spectacular beginning of the first-ever China-hosted Olympic Games aside, today is lucky because of the power of the number eight. Eight is pronounced "ba" in Mandarin, which sounds similar to the word "fa" which symbolizes prosperity, development and getting rich! And today is the only day this century when the three eights will align on the calendar, that is the 8th day of the 8th month of the 8th year of the century! And to make sure the Olympics benefit from this auspiciousness, the Opening Ceremonies began promptly at 8:08:08pm tonight! So that makes six eights, 2008-08-08 08:08:08pm! And since six is also a lucky number that symbolizes that everything will go smoothly, why the heck would you not buy Chinese stocks today!
So, that is exactly what I am doing today. I am going to buy some more FXI (China ETF) to my portfolio, as I continue towards my goal of building up a position in FXI that will represent 10% of my total investment portfolio.
I also understand that, on average, country's that host the Summer Games benefit from substantial gains in their national stock markets the 6-month and 12-month periods after the Olympics. I hope the same holds true for China. We will know for sure a year from now. Until then, Happy Investing!
Gregory
the fact that shanghai did not rally today probably means the bear is still alive in china. even so, we are probably close to the end of china's bear market. if we can get thru the early fall without a complete meltdown here in the us, the stage will likely be set for a big rally in china. there is a lot of cash built up looking for a home. there may be another bubble in our future. i have two candidates for the next bubble. one is china. the other is gold. and no, china has not yet had a bubble. at shanghai 6000 it was nowhere near a bubble, just a bit ahead of itself. right now fxi pays 2.7% dividend. not bad for a country growing 10%.
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