The following ETF has caught my eye and I believe it to be a great bearish global play. iShares FTSE/Xinhua China 25 Index (NYSE:FXI) is a China play as the title obviously displays. This particular ETF correspond with the price and yield performance of the FTSE/Xinhua China 25 Index which essentially moves with the economy of the booming nation. Why it has caught my eye as a potential play is that last quarter, China saw the slowest GDP growth in the than it's had in the past six years. Now obviously this is caused by the Global Economic slowdown affecting the world economy accompanied by a reduction in global demand for Oil forecasted for the coming quarter.
The 52w low is a little over $30 and the high being $73.19. As I write this piece, the price has bounced on the September 30 market bounce after the 29th's congress financial bailout vote failed sending markets globally into a downward spiral.
China should correct soon as the American dream continues to crumble and continue positive economic growth and return in a 12-18 month period back to its highs.
Personally I am so sick of North American market instability, I am aggressively seeking international investment opportunities. If any readers have any suggestions, please leave your suggestion as a comment to this article.
Cheers,
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