FXI

Portfolio Chart 1

Q&A: How do Foreign ETFs Track their Assets When Markets are Closed?

Q. Trading hours in Asia (NYSEARCA:VPL) and Europe (NYSEARCA:FEZ) don’t coincide with the U.S., so how are ETFs that own foreign securities still able to closely track their indexes even when trading in these securities may be closed? A. Price discovery is an around the clock 24-hour process and capital markets constantly add information that can change the …

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Falling Bricks

Don’t Get Hit By a Falling BRIC

A credit bubble (China), inflation (Brazil), and the threat of war (Russia) have made BRICs a dangerous place to invest. Is the worst over? “BRIC” is an acronym for Brazil, Russia, India, and China that was introduced in 2001. Enthusiasm for investing in stocks from BRIC nations rose in the mid-2000s as mega-emerging markets outperformed …

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Are Chinese Stocks Really a Bargain?

Chinese stocks are the bargain of a lifetime. That’s what pundits from Goldman Sachs to analysts at major media outlets have been reporting. Are they right? The resurgence of borrowing money, led by world governments, has pushed global debt levels up 40% from $70 trillion in 2007 to around $100 trillion today. And while the …

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Chinese Stocks are a Wonderful Value Trap

When it comes to properly assessing China’s stock market, are financial experts bad or just blind? Here’s what they’ve been saying: Buck the Trend, Buy Chinese Stocks – Forbes, Jim Oberweis, 7/9/13 Huge Reforms in China Could Lead to Big Upside for Top Chinese Stocks – 247wallst, 11/19/13 It’s Time to Buy China – MarketWatch, …

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The First Inning of China’s Bear Market

Never mind China’s reputation for cooking the books; its raw uncooked economic data is sagging. China’s unexpected drop of 18.1% for February exports was the biggest decline in Chinese exports in almost five years and its biggest trade deficit ($23 billion) in two years. (Analysts, that over-optimistic bunch, had forecasted a 7.5% rise.) In January, …

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China’s Busted Bank Loans Hit 2008 Crisis Levels

Depending on whom you believe, China is either on the verge of economic utopia or a major economic shock. And the data is leaning toward the latter. Non-performing loans made by Chinese banks soared to $97.5 billion in the final three months of last year, according to the China Banking Regulatory Commission. That matches levels …

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Will Shadow Banking Take Down China?

To China, shadow banking has been both a blessing and a curse. It’s been a blessing, because it’s created an immediate steroids like impact on China’s economy of  falsified strength and growth. It’s been a curse, because the art of gaming economic growth through credit expansion never has a pretty Hollywood ending. In China, credit …

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