A shorter post today. It’s been another week of sound and fury, signifying nothing – or very little, anyway. After ending last week at 1,728.78 points, the SCI closed today at 1,747.71 a modest weekly gain that obscures a sharp rise on Wednesday followed by an almost-as-sharp fall on Thursday.
Happily, the Fund once again outperformed the market, largely thanks to – we are savoring this phrase – a steadily rising Anhui Conch Cement (600585.SH). It likely got a boost from talk of the government further increasing infrastructure spending, rising a full 10% on Wednesday. Unfortunately, as we argue in a story on steel in our upcoming issue, increased government spending is unlikely to make up for collapsing demand in property and other sectors. Looking at the prospects for Anhui’s share price, something wicked could yet this way come.
All in all, we’re down 47.1% since June 3, while the SCI is down 49.1%.