China's stock market is prone to explosive bull markets
To all the people who are saying that China's stock market is uninvestable and hasn't gone anywhere since it started, please take a look a this chart below.
Since the CSI 300 Index was created in April 2005, the performance has trailed the $.SPX(.SPX)$ returns by 50%. That is, a 325% return for China vs. a 375% return for the S&P 500.
What is also clear is that China's stock market is prone to explosive bull markets not seen in the U.S., as well as long bear markets (that aren't allowed to happen in the U.S.).
The bull markets have, on average, seen 273% gains over a period of 1.5 to 2 years.
We've already finished the very long bear market cycle in Chinese equities. What comes next, I'll leave to your imagination.
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