Looking at the divergence of the Shanghai Composite index and the Dow Industrials over the last 3 years or so is staggering. In 2011 the Chinese index lost 20% of its value and it now sits at 2,106, down 17% in the last year and down 62% versus its peak of 5,589 in 2007 before the financial crisis. Since July 2009, the Dow Industrials has had a steady climb up and the Chinese index has moved in the opposite direction. China may be an economic miracle, but not so much for investors in its stock markets!
Contrarian Investor UK