After being bombarded for over 2 weeks with shocking news about the Russian invasion I could not help it but to find it absolutely ridiculous that China's leaders are still pushing for a Covid free China. Once again they're shutting down parts of their economy causing significantly more suffering to their huge population than what Covid would.
What impact does this have on traders?
#FXI is an ETF (Exchange Traded Fund) that tracks a market-cap-weighted index of the 50 largest Chinese stocks traded on the Hong Kong Stock Exchange. On the below chart we can see that in the last 30 days the price dropped from $38 to $27. That's an insane 29% drop and I would be very interested to find out how the market justifies such a large drop of an ETF that tracks huge companies.
Does FXI present a huge investment opportunity?
Absolutely. The only reason why my today's pick is not FXI is because it has already been picked earlier and at the moment that position is suffering big time. However, over time we can expect the stock to bounce back.
How do I know?
I don't. But if we look at the monthly chart then we can see that we are at GFC levels!