Wednesday, February 03, 2010

A Random Walk Down - China's Bubble? Oh Burton!

Burton Malkiel, author of A Random Walk Down Wall Street - because of course we all know that stock prices are subject to completely random movements - is starting a hedge fund to "go long China."

This story really is too good to be true. Chinese stocks quietly topped last August.

Burton is timing the random walk into a downtrend perfectly.

Usually we see ultimate contrarian indicators like this near a top, but mostly still on the way up - this is a special treat to get one while we're on the way down. Especially as the Shanghai Composite moves below it's 200-day moving average.


Hat tip to Porter Stansberry for writing about this in the S&A Digest

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