A couple of days ago, I talked about three big reasons I’m long China.
Today, I want to go deeper into the overwhelming bearish sentiment around these stocks and why it could be the perfect catalyst for their next leg higher.
Whether it’s the doom-and-gloom headlines, distrust in the government, skepticism over earnings, or fears of an escalating trade war., the bottom line is— “these stocks are uninvestable.”
Just look at this chart. Short interest in the Large-Cap China ETF $FXI was recently at the highest level it's been in the last year and is still elevated today.
Investors around the world keep piling in on the short side.
Every time short interest has spiked like this, it’s marked a major turning point.
And I think it’s happening again now.
The last thing I’d want is to be caught on the wrong side when this tide turns. And guess what, it has been turning for a while.
I think it’s only the beginning.
The risk isn’t in owning China. The real risk is in NOT owning, or god forbid, being short China. This market is about to rip.
Steve just went live breaking down why he thinks this China theme will keep working this year.
