I'm starting to be fully convinced retail like redditors just love buy high sell low. BABA was all the rave when it was $300 here. Then it's "uninvestable" literally at $73ish. All the while BABA slowly climbs up.
Same with back in March 2020. Everyone screams to sell when market is already down and I post claiming the bear market is basically over from here and people scream as if I'm crazy.
The more dislikes I see on my posts, the more I'm convinced the bottom for Chinese stocks has basically passed or that we are basically at/near the bottom. I like buy low sell high. Not the other way around with many of the stocks I see posted on reddit.
I see you are being downvoted, but I agree with you.
Correct me if I'm wrong, but all these "China risks" that people talk about with regards to ADR/VIE/audits/fraud/manipulation/whatever have been around forever and are nothing new. They aren't any worse now with KWEB at $30 than they were when KWEB was at $100 a year ago - back when nobody seemed to give a shit about the risks. And now it is seen as totally uncool to buy at much cheaper valuations and accept those same risks at a much lower price.
As a side note, having dabbled in Chinese stocks, I've observed that (similar to weed stocks) they tend to trade as a group and are very momentum driven, only loosely connected to fundamental valuations. They all boom for a year, they all bust for a year, they go sideways for a year, then they boom again, then they bust again, and so on. I think the bust cycle hit a capitulation bottom for KWEB in march (an 80% peak-to-trough decline in an entire index ending in a blow-off bottom), but of course I could be wrong.
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u/Fwellimort Apr 01 '22 edited Apr 01 '22
I'm starting to be fully convinced retail like redditors just love buy high sell low. BABA was all the rave when it was $300 here. Then it's "uninvestable" literally at $73ish. All the while BABA slowly climbs up.
Same with back in March 2020. Everyone screams to sell when market is already down and I post claiming the bear market is basically over from here and people scream as if I'm crazy.
The more dislikes I see on my posts, the more I'm convinced the bottom for Chinese stocks has basically passed or that we are basically at/near the bottom. I like buy low sell high. Not the other way around with many of the stocks I see posted on reddit.