Dennis Gartman to CNBC: Chinese bull market is still alive
Author and
publisher "The Gartman Letter" Dennis Gartman,
which produces these daily
comments since 1987, recently expressed
their views on the Chinese market on CNBC channel. Besides
the publication of "Letters" Hartmann also
conducts numerous presentations
and courses on capital markets for brokers, central banks and public institutions
United States, and he became a regular in recent years,
guest in television and radio broadcasts.
Last
week "trio" stationed in Hong Kong
shares caused panic in the Chinese markets,
When the three companies unexpectedly lost billions
USD market capitalization of all
in a few hours. However, according to
Dennis Gartman, expressed in his
"The Gartman Letter"Chinese bull market
still intact and undamaged.
While
like some individual stocks may
show similar variability,
most analysts CNBC say
ordinary investors should not be afraid
to invest in the second largest
economy in the world. Chinese stocks
We finished the week on a seven-year highs,
Features highlight the index Shanghai Composite,
which grew almost twice only
in the last 6 months. However, under
veil of the rapid growth of a number of companies
hard hit last trading
week.
Shares
Hanergy Thin Film Power, working with solar
energy, fell by almost 50% Wednesday,
resulting in the company's chairman
It lost $ 15 billion in a matter of minutes.
Then on Thursday Goldin Financial Holdings and Goldin
Properties dropped by as much as 60% each. those companies
They said they did not understand the reasons for this
the mass movement down, according to
an article in Reuters.
Dennis Gartman
says that the sudden collapse in prices can
be a signal to other alarming
large Chinese companies. "Never
It is never just one cockroach -
he spoke in the transfer of "Fast Money" on
CNBC last week. - I'm afraid for them
followed by a series of similar events".
Analyst compares the wild swings
Last week, with the same
circumstances that investors
We observed continuously in non-volatile
US biotech industry. For example,
first of this month, shares of Puma Biotechnology
We lost almost a quarter of its value,
when the pilot tests of the drug
Cancer does not live up to expectations.
its board
Hartmann, however, give a little unexpected:
He said that investors should not
cancel the purchase on the market of biotech
companies, because if some
elements showed wild movement, others
We should not be afraid of it,
and stop to invest in China
due to the recent strong decline in stock
not worth it. As said,
Hartmann, if the trend of falls on the Hong Kong stock exchange will continue,
this "It gives us a chance to finally become
Chinese buyers of shares".
Dramatic price fluctuations "will send
many people on the sidelines, because enough
instill fear in people to the part
watch as prices move down".
- he said. "That's when you can become a buyer, and almost the only".
Hartmann says that if the Chinese market
will be adjusted to 10-20% in the next
a couple of months, it will seek to
consumers via the exchange of funds.
"I think the easiest way to go to the FXI and PEK.
This 2 dominant exchange traded
Fund. Maybe this is the only
public way to participate in the
market, which diverges so far,
as it is geographically removed from us".
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