Thursday, August 11, 2005

Time to short China and India ?

There have been atleast three cover stories in one month with China and India as the focus, the newest one being the latest edition of Business Week. In the past, I have used cover stories to avoid buying and to start selling stock.

A Business Week cover story has been a great indicator of a top, even a temporary one. I think a China slowdown is around the corner, though the long-term growth of China is in no doubt. In India, the economy itself is not in danger of slowing down yet, but the stock market has to pullback soon.

In summary, do not open large positions with significant exposure to China/India. A better entry point is coming soon!


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