A New Bull Market Is Starting Outside of Precious Metals, Commodities In This Key Market

What you are looking at it is the FXI ETF, which holds a basket of large Chinese stocks. The Chinese stock market had been in a big bear market since early 2021.

That’s three years and during that time just about every other stock market in the world went up.

Three years is a long time for a bear market, and the valuations for Chinese stocks got super low, and even now the FXI ETF is trading with a P/E ratio of 9.25.

You’d be hard pressed to find any stock market that has had a bear market longer than three years and in early January FXI formed a double bottom off of its low of October, 2022 and rallied back up to its 150 and 200-day moving averages around the $24.00 price point.

It drew my attention and I mentioned it.

It has since blasted through that price pause and rallied through its upper 200-day moving average.

It looks like the start of a new stage two bull market, like we have seen start in March for gold and silver.

When the Chinese stock market goes up, and its economic demand grows, that tends to also correlate with a strong commodity bull market.

Americans have been selling the GLD ETF they year, while the Chinese Central bank and Chinese masses have been buying up gold. In China, apparently young people have turned their backs on virtual crypto coins to buy gold. According to the Economist, “these days Chinese gold shops regularly serve customers in their 20s. Xiaohongshu, a social-media site favoured by “Generation z” (those born between 1997 and 2012), is buzzing with talk of the precious metal.”

I’m not thinking of piling my money into China ETF’s or stocks, there is the geopolitical risk, but maybe more Americans need to learn something from their gold buying.