6 quarters (1.5 years) of slowdown, so the IMF think it is bottoming (this view is too optimistic). I think there is more slowdown to go. One thing to remember is that when Europe’s and America’s economy slows, China manufacturing will slow, which means Chinese citizens losing their jobs.
If unemployment in China gets worse, then people spend less over there as well, affecting their domestic GDP. Now, we can how see high unemployment has affected the U.S economy, it may have the same effect in China.
I will wait for the U.S. and Europe economy to bottom out, before jumping into China…as the economies of all countries are all very connected in this age of globalization. I am keeping my eye on the charts of ZCH (BMO ETF) and CHI (iShares ETF) on the Toronto Stock Exchange, when the time is right according to a 5 Year chart, then I will buy and hold for 1-3 years.
by Das Brain
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