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I see a lot of headlines today blaming the market’s slide on the protests in China, yet the China ETF went up today: https://morningstar.com/etfs/xnas/mchi/quote Odd situation. Or just bad reporting on the causes of the slide?
Barron's options guy Sears noted in the weekend issue the recent bounce in FXI and thought that investors were looking ahead for 2023. He recommended calls on FXI. May be this mentions also caused it to go up when the China and HK markets closed down (although not as much as they were last night) - the so-called Barron's effect (doesn't always work). https://www.barrons.com/articles/china-reignite-growth-limiting-risks-51669157037?mod=past_editions
China is well and truly screwed with respect to Covid. If Xi backs down he loses face, and there will be a lot more deaths in older people who have not been inoculated. If he stays firm, this episode will likely be only the first of protests- about Covid lockdowns, and then... who knows what will be next?
@YBB - tell us more about this Barron's effect please? I admit that I am no where near your level of investing knowledge and that this is a new one on me.
@Mark, stocks/ETFs/CEFs mentioned in weekend Barron's typically get 1-2 day (Mon/Tue) bounces but there isn't any long-term effect. This Barron's effect has been getting diluted because many stories are now published online on Friday while the markets are open. And I have complained about the "lazy" options fellow who tends to file stories on Wednesdays and never bothers to revise/update them even when there is related news.
BTW, my Barron's postings (somewhere) go back decades. In fact, one consideration was to provide readers Mon's/Tue's news legitimately and freely on Saturdays. Before all this online stuff, many got their Barron's copy by mail on Mondays/Tuesdays. But my home delivery in the Chicago area has been between 5-7 AM on Saturdays. This has also been a marvel of print/communications technology that so much stuff (text, data) after Friday market close finds its way in print and home-delivered early-AM on Saturday.
Comments
https://www.barrons.com/articles/china-reignite-growth-limiting-risks-51669157037?mod=past_editions
Bloomberg is arguing that investors are now enthusiastic that the protests will cause China to loosen its Covid restrictions. Meanwhile, almost every other article says those protests are the reason global markets fell. It seems nonsensical.
BTW, my Barron's postings (somewhere) go back decades. In fact, one consideration was to provide readers Mon's/Tue's news legitimately and freely on Saturdays. Before all this online stuff, many got their Barron's copy by mail on Mondays/Tuesdays. But my home delivery in the Chicago area has been between 5-7 AM on Saturdays. This has also been a marvel of print/communications technology that so much stuff (text, data) after Friday market close finds its way in print and home-delivered early-AM on Saturday.