Burton Malkiel, author of A Random Walk Down Wall Street – because of course we all know that stock prices are subject to completely random movements – is starting a hedge fund to “go long China.”
This story really is too good to be true. Chinese stocks quietly topped last August.
Burton is timing the random walk into a downtrend perfectly.
Usually we see ultimate contrarian indicators like this near a top, but mostly still on the way up – this is a special treat to get one while we’re on the way down. Especially as the Shanghai Composite moves below it’s 200-day moving average.
Hat tip to Porter Stansberry for writing about this in the S&A Digest