China Growth Stocks

[CSykes]

I think the number of extremely undervalued China stocks has pretty much evaporated. There are very few if any under a 5 P/E anymore. Most have had some recovery, still undervalued, but the huge market discounts of the summer are mostly gone.

I still believe long term there are a number of great plays still to be had. But yes, I do believe a more broader correction is taking place. That is one reason you haven't seen me around much. I took some off the table during the China rally this summer and I'm on the sidelines now waiting for a bottom on many to re-enter.

Timing is everything as you say. For those that came in on the broader rally, my only advice is to cost average during the correction. A good rule is to never go "all in", always save some for corrections.

I do feel we are at a bottom for this most recent pull back but we will probably continue to consolidate for the rest of the year as the overall rally is running out of steam.