Chinese Stocks Maybe The Best Buy In Global Stock Markets
By Bryan Rich
September 21, 5:00 pm EST
Last Friday we talked about the technical breakout in rates. And we looked at this chart as the benchmark 10-year U.S. government bond yield hit 3%.
This week yields traded as high as 3.09%. These 3%+ levels have proven to spook stock markets on all other occasions this year. But it hasn’t this time. In fact, the Dow closed the week on new record highs. The prospects that Fed normalization might be slowing, and that 10-year rates may be carving out a new/higher range, reduces the prospects of seeing the yield curve “invert.” That’s positive for stocks.
As we close the week, let’s take a look at Chinese stocks, which put in a double bottom earlier this week, and closed today threatening a technical break of the big downtrend of the year. Believe it or not, Chinese stocks could be the best buy in the world right now.