Marc Faber: China Looks Weak Technically, Could Crash in 9-12 Months, State Street Rates China Tactical Underweight (FXI, EWH)

Feeding off my previous post full of goodies on China (FXI, EWH charts, Jim Chanos on Fox etc), Marc Faber of the Gloom Boom & Doom Report thinks the Shanghai and Hong Kong stock indexes look weak "technically" (lower highs during 2009 and below resistance). He also mentioned that industrial commodity prices, industrial sensitive currencies (Aussie) and related equities (Freeport, Rio-Tinto) are all acting "heavy".  He then dropped the "crash" call.

"So I think that the Chinese economy will slow down regardless. It is more likely that we will even have a crash sometime in the next 9-12 months". On the BloombergTV video clip Faber also talked about Greece, Yuan revaluation, agriculture and money printing.  Simply put, he likes gold.  Find the Bloomberg video here and original article.  For recent posts on Marc Faber click here or the label.

State Street Global Advisors put a "tactical underweight" rating on China and Brazil stocks based on valuation (video below).  They think the long term story looks good, but are cautious on emerging markets in the short term.

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