Today’s theme is Make China Great Again — as evidenced by the mammoth gains in copper, steel and of course Chinese burrito lottery stocks.
We can dance around the issue, and play games, discussing FCX, X or even BIDU. But let’s be clear, Chinese stocks are long overdue some respect here inside of America. They’re often regaled as ‘peasant stocks’ and viewed as ‘publicly traded frauds’ waiting to ‘blow people up’ and ’cause others to commit suicide’. The truth of the matter is, these securities have done wonders for those who’ve had the testicular fortitude to hold them.
Let’s go over today’s lottery winners.
ATV +25% — what the fuck is that? No one knows. Bid it up.
JRJC +18%
BITA +13%
CALI +12.5%
JP +12%
LITB +9%
XNET +9%
BGNE +8%
WB +7.7%
SHI +6.7%
HTHT +6.6%
Year to date, there are dozens of these little bastards up 50, 60, hell 100%. It’s the ultimate Constanza trade, seeing all of these evil Chinese companies roar higher under a Trump administration, which was supposed to put an end to Chinese tomfoolery.
The ETF for China, FXI, is higher by 24% this year, outpacing the S&P 500 by more than 2x.
Now isn’t that something?
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There is relief over the China/Russia/North Korea/South Korea/United States situation. The UN vote to sanction 10 Chinese companies who trade with China was a 15-0 result, with both China and Russia supporting it.
Expected that this will hit North Korea hard, very hard. These companies are essentially life sustaining to the North Koreans. Lot of pressure on the Poison Dwarf Kim.
Don’t have a list of the 10 Chinese companies, but if they are publicly traded, they are best avoided.
There are already some who are claiming that this is a master-stroke by Trump and Tillerson. Until now, it has always been the US vs N Korea/China. Now it’s the UN vs 10 Chinese companies, and China/Russia support it.
Correction: “… to sanction 10 Chinese companies who trade with North Korea …”