CHINA CONTINUES TO FORECAST A STRONG U.S. EQUITY ENVIRONMENT

I have often pointed out the fact that Chinese equities have served as a fairly reliable leading indicator of US equity prices over the last few years. Assuming this trend is still in place (which is quite clear based on the August lows in the US market which were preceded by the July lows in the Shanghai Composite) recent price action bodes quite well for the U.S. stock market as Chinese stocks have rallied almost 10% in just the last 4 sessions and over 20% from their summer lows:

Cullen Roche

Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.

He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.