Stocks reaching new 52-week highs roll call: China Eastern Airlines, China Fire & Security, China Automotive Systems, China Southern Airlines, China Telecom, China Life.
In other words, that China boom we told you about is still in full swing.
China is a marketer's dream. Over one billion hard-working people are coming on line in the global economy... and over one billion new consumers of refrigerators, cigarettes, cell phones, cars, and whatever else you could possibly sell.
This "world's greatest growth story" quality often produces awesome rallies in Chinese stocks. For instance, from mid-2005 to mid-2007, the benchmark Shanghai Index soared 500%. That was followed by a 70% bust. But as you can see from today's chart, we're back in boom territory with China. The Shanghai index is up 87% so far this year... and the "new highs" list is full of China.
After such a big run, Chinese stocks are plenty popular and overvalued... so being long here is absolutely a "momentum trade." But what a trade it can be... when China runs, it runs.
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