There’s limited news flow out there, and stocks are trading very light volume. All then news flow is US- Buffet puts $1 billion into BofA, Google buys Motorola, Gold is getting clobbered.
In overnight trading, the China markets were very strong with the Shanghai “A” shares up 2.82% and the B shares up 2.34%
The Wall Street Journal features an article that points out China consumption numbers don’t match with a China “implosion”.
In a move to further “open its borders” to international investors, China daily carries an article today suggesting in September, the Central Government will change to regulations and make it easier for foreign investors to buy and sell RMB from outside the country.
If this is true, this might accommodate China small caps, many of whom would like to do major buy backs of their shares, but have difficulty moving their cash out of the country to brokerage accounts where the transactions can take place.
The NY Times reports China is going to have a hard time “rebalancing” its economic growth away from a dependence on the manufacture of goods for exports and government sponsored infrastructure build out to a consumer driven economy wherein it benefits China to allow the RMB to strengthen.
There’s a great lesson for investors on Apple shares today. The next time you read “it’s all priced in”, think of Apple. Steve Jobs finally tendered his resignation yesterday afternoon due to health concerns, and the stock is only down 2%. I know it’s not China, but if you’re looking for a cheap stock, consider AAPL. Obviously, Jobs resignation was all priced in, and you can now buy the greatest tech growth stock in the world for about 7x this year’s earnings. This is a great stock to own and sell covered calls against.