Chinese ADRs: Long-Term Investment Opportunity? Part II

The industrial strategy for aerospace has been developed by government and industry. Launched today by Deputy Prime Minister Nick Clegg during a visit to Airbus in Filton, it sets out how they will ensure the UK continues to thrive in the face of increasing global competition and is able to exploit rapid changes in technology.

Hickey and Walters (Bespoke) submit: So far this earnings season, 1,115 companies have reported their quarterly numbers, and the average one-day price change for all of these stocks in reaction to their reports has been +0.25%. Interestingly, 307 S&P 500 companies have reported so far, and their average one-day performance has been -0.44%.

Hickey and Walters (Bespoke) submit: In several posts and reports last year, we highlighted how even though the Chinese stock market was one of the best performing global markets, Chinese ADRs trading in the US were actually outperforming their counterpart

By Parsimony Investment Research:We believe that MLPs offer retirees (and other income investors) stable yields that are typically higher than those of common stocks. In addition, MLP returns have traditionally had low correlations with stocks and bonds, making them good portfolio diversification assets (especially in times of economic uncertainty).

Hickey and Walters (Bespoke) submit: While the Shanghai Composite index has been struggling relative to the S&P 500, ADRs of Chinese companies listed in the US have been performing much better.

John M. Mason submits: The headline reads that the Federal Reserve is going to engage in a new round of quantitative easing. The Fed is going to purchase an additional $600 billion in US Treasury securities over the next eight months, or $75 billion per month, in order to get the economy growing again. The information that did not make the headlines is that over the same time period, roughly $250 billion will run off of the Fed’s mortgage-backed securities portfolio.

Chuck Carnevale submits:<< Click to read Part 1In Part 1 of this two-part series we talked about how emotions can cause the stock market to misprice companies over short periods of time.

David Hunkar submits: The Shanghai SE Composite Index is down 17.71% Year-To-Date (YTD) and is flirting with bear market territory. While many of the Chinese investors are afraid of the market now, some see this plunge as a good time to enter the market. The optimists reason that it is not worth keeping money in banks due to the low interest rates and investments in real estate are not wise either since prices have skyrocketed.