By Elliott Wave International
With China's main Shanghai Composite index up almost 40% this year, and the tech-heavy Shenzhen Composite index up more than 90% YTD, are Chinese stocks in a bubble?
It's a legitimate question. You'll find many answers out there, but this answer you won't want to miss.
This answer comes from Elliott Wave International's own Mark Galasiewski, the editor of EWI's monthly Asian-Pacific Financial Forecast. Mark is on record for turning bullish on Chinese stocks almost a year ago, exactly on July 3, 2014. In that month's issue -- and at the time when almost no one was bullish on China -- Mark wrote:
"If the [Shanghai Composite] index breaks out above the upper channel line -- which runs through 2100 in July and which is about 2% above current levels -- then the multi-month uptrend that we have been expecting is likely under way."
Getting back to the question if Chinese stocks are in a bubble -- below, you'll find a link to a free special report where Mark gives you his answer in full detail. To give you a taste, here's an excerpt from Mark's June 2015 Asian-Pacific Financial Forecast: Continue reading "Chinese Stocks: "How to Think Like a Billionaire Investor""