While we wait for Asian markets to come fully on line, here's a piece with an argument why stocks in China will double in the next 18 or so months
Cites Jon Carnes of Eos Funds
- "I foresee a period of price consolidation lasting at least several months followed by a breakout to new highs that will ultimately lift the Shanghai Composite Index to between 7,000-8,000 over the next 18 months"
- "[Investors] are discovering, for the first time, the Chinese version of the 'Greenspan put.' Like Alan Greenspan in the 1990s, the Chinese government has now shown that it will drastically intervene to support the stock market"
- If all else fails, Beijing will devalue the yuan as a last resort and that in turn will "set the stock market on fire"
What do ForexLive traders say? Thoughts in the comments please!