economic data begins to illustrate a loss of steam in its recovery, then China and its currency maneuvers may come under harsher scrutiny for no other reason than the fact that uncertainty loves company.
What the Periscope Sees
It's probably safe to say that a huge amount of retail equity investors are unfamiliar with China investments. Aside from the rare high-profile name such as Baidu, Inc. (BIDU), the Chinese language Internet search giant, the China market remains mysterious. With the recent news regarding the expansion of the yuan band, however, together with a lot of news coverage focusing on the drop in China's GDP, it may be a good time for traders and investors to familiarize themselves with some trading vehicles from that region of the globe.
Here are trio of ETFs that have been successful so far for the year. However, if a correction starts to become obvious in the market in general, then these may become prime candidates to go short.
HAO, China Small Cap ETF, tracks the AlphaShares China Small Cap Index. It is currently up over 14% for the year.
GXC, SPDR S&P China ETF, tracks the S&P China BMI Index. It is up nearly 12% year-to-date.
Finally, EWH is up over 12% for the year, and tracks the MSCI Hong Kong Index.
Full disclosure: The author does not personally hold any of the ETFs mentioned in this week's "What the Periscope Sees."
Disclaimer: This newsletter is published solely for informational purposes and is not to be construed as advice or a recommendation to specific individuals. Individuals should take into account their personal financial circumstances in acting on any rankings or stock selections provided by Sabrient. Sabrient makes no representations that the techniques used in its rankings or selections will result in or guarantee profits in trading. Trading involves risk, including possible loss of principal and other losses, and past performance is no indication of future results.