How now my dearest Moo Moo Cow?

My Dearest Moo Moo Cow,

Some interesting stuff around, eh? Firstly, your Shanghai 180 posting was rather interesting given what happened yesterday with the Chinese market falling some -4.5% and at one point the market was down as much as 7% and this dragged the Asian markets down with the concern focued mainly on China rate fears. But is the rates fear just the issue? Or is it the case of an extremely high Shanghai 180 market?

Some interesting commentary taken from the following news article.

• However, analysts warned that the price levels were unsustainable and the market could be approaching another correction.
  
  "This is definitely a bubble in the making - for most stocks, positive earnings growth has been priced in until 2009," said Steven Sun, HSBC equities analyst. "At the height of the last bubble [2000-01], we saw investors opening 2m accounts a month, which is half the current rate."
  
  "Any money getting into the market now is not smart money and is coming from the kind of people who can least afford to lose it," said Fraser Howie, author of a book on the Chinese stock markets. "That has to have the government worried about social stability."
  
  The rush to join the Chinese stock-buying frenzy comes after the market rose more than 130 per cent last year and a further 40 per cent so far this year.
  
  The benchmark Shanghai Composite Index rose 0.01 per cent on Wednesday to another record high.
  
  Retail investors began returning to the stock market in large numbers in May, following a five-year bear market. The figures for new accounts are considered a rough proxy for new retail investors entering the market, although there have been cases in the past where individual traders have opened thousands of accounts using fake identifications. There is also an element of double-counting in the figures as many investors open accounts in both Shanghai and Shenzhen.
  
  Even as retail investors continue to pile in to the market, foreign investors have grown cautious. One international fund manager said he now had more of his Chinese assets in cash than at any time since the government allowed foreigners access to domestic stocks.
  
  Before the February correction, the government had tried to cool market sentiment, publishing prominent editorials warning of the risks. However, since then, it has been quiet, leading many to assume there is tacit approval of the ongoing bull run.
  
  "We expect the government to come out with more measures to cool the market soon," said Jing Ulrich, JPMorgan chairman of China equities.

Some real concerns?

And then there is the commodity guru, Jim Rogers. He has another news article out. But first, I had posted a posting on his views back in March; And what about Jim Rogers Views?. Now I want to bring out this article again because he had an interesting comment.

• But he added: "China is one of the few countries in the world where I'm willing to sit out a 30-40 percent decline."

That's mighty interesting cause if the 30-40% percent decline were to happen, what about the chain-effects caused? Would want consider it as a correction? Or would one consider it as a crash?

Anyway, on March 29th, Mr. Rogers has another news article, Commodity guru Rogers says not selling China shares.

Some interesting comments from that news clip:

• HONG KONG, March 29 (Reuters) - Commodities and investment guru Jim Rogers said on Thursday he was holding on to his Chinese shares, even though the market is pricey and a bubble may be developing.
  
  "I own Chinese shares. I'm not selling Chinese shares. If the Chinese stock market doubles again this year I'll have to sell, because then it's a full-fledged bubble," he told a media briefing after a speech in Hong Kong.
  
  "If it goes down 50 percent this year I will buy a lot more Chinese shares. I'm not smart enough to know what it's going to do, but I'm not selling China at all."
  
  "There's no question that PEs (price to earnings ratios) in China in the A-share market are too high for some companies, but that doesn't mean it can't get much worse. When you have a bubble develop, crazy things happen," he said.
  
  "The Chinese stock market could double this year, even though it's expensive right now."

So how my dearest Moo Moo Cow? What do you think of his bullish veiws on the Chinese markets?

Moving on, just in case you do no notice but there's the extreme weakness in the US Dollar. ( click here for one of the many articles around).

Last but not least, Mr. Marty Chenard, who wrote that Shanghai 180, article has posted another update and you can read it here.

rgds