China Growth Stocks

[Shengli]

The Egypt situation could be a greater net negative for China stocks than non risker US stocks .Part of the catalyst for the Egypt unrest has been higher food prices which have been brought on by uncle Bens Qe2 . China is also an authoritarian regime that must keep the masses happy . China may even act more aggressively to fight inflation . We get important #s from China next week . The leaders already know these numbers . I did not think we would see another rate hike until at least mid February but now it could come faster and more aggressively .So after thinking about the spreading middle east situation i do not expect any China stock rallies for at least several weeks