Interesting to chart china-centric funds or ETFs over the last three years. Here's FXI and MCHFX charted. They seems to be stuck in a sideways range with cyclical lows edging higher from previous cycle lows, but bump up against resistance on the high side:
Within three three year period the highs and lows seem to be consistently a little higher each cycle.
If this persists the next cycle high would be about 15% from today's price.
Comments
"Mobius’s rally forecast pits him against bearish analysts at Bank of America Corp. and Deutsche Bank AG. BofA’s David Cui, the No. 1 ranked China strategist by Institutional Investor magazine, said July 14 that the stimulus that’s sparking the rally is actually making equities less appealing as leverage rises and free cash flow dwindles. Deutsche Bank’s John-Paul Smith reiterated this month his concern that rising debt levels pose a risk to China’s economic stability. "
bloomberg.com/news/2014-07-24/mobius-says-not-too-late-to-buy-china-with-20-upside.html
"Ethiopia’s emerging potential as a production center for labor-intensive products from shoes to T-shirts to handbags. In a country where 80 percent of the labor force is in agriculture, manufacturers don’t have to worry about finding new workers. Its population of about 96 million is Africa’s second-largest after Nigeria’s. "
bloomberg.com/news/2014-07-22/ethiopia-becomes-china-s-china-in-search-for-cheap-labor.html
Have a nice weekend, Derf