Will the Shanghai Composite Index crack 3,000? Having closed today at 2,928.21 (meaning the index is up more than 60% this year), that is looking like a real possibility. While the People’s Bank of China has added its voice to the chorus of those calling the present time a "critical moment" for China’s economy, the market has continued to indicate overall optimism.
We’ll refrain – somewhat – from our standard role as market Cassandras this week. Our skepticism about the market rally has been mentioned many times before (and may still be correct) but it hasn’t proven very profitable. Our arch-rival, the Red Dragon Fund has been taking better advantage of the market, capitalizing on quick gains enjoyed by PetroChina this week.
As we mentioned in our last post, we are considering getting back into the market, too. After all, our mission is not to pursue a wise investment strategy so much as one that generates interesting copy while beating the market. We can’t do that as a cash-only fund, so expect some action early next week.