Macro Monday: Investment options and investing in China - 01/22/24

Chart of the Day: (01/22/24)

Investment options and investing in China

• You can make money invested in Chinese stocks, but I’d rather stay away as a professional. I most likely will never invest there again, despite (actually, because of) multiple visits to the country in previous years.

• China --> demographics / dilution / rule of law... the first step is to decide in which country to invest / trade... it's a kick out decision, if you do get it wrong, you can make problems for yourself. 

• In the book, Myself a Mandarin, an unexpectedly appointed magistrate in a country district in Hongkong, the author found himself plunged into a Chinese world about which he knew next to nothing and had to learn as fast as possible. In a nutshell, what he learned was that it usually isn't as it seems there, the rule of law is open to interpretation, and putting your hand on the bible swearing to tell the truth...isn't a thing; more or less what I learned on my trips and investments made there. 

• I am not familiar with "Wind" and have not checked this source. However, my sense is that the ideas above translate into the chart below which shows, apparently, almost no company in China ever loses money. Seems legit.

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• Our Chart of the Day is intended to be a standalone technical chart. 

• We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time. 

• It is not a directional market call. 

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