Today’s investing strategies and trading connections are a renewed and completely different version of what most investors have been used to in recent years. Everything is now as connected as ever in a strategy that professionals now term “global macro.” The premise of this method and market mechanism is that when one cog of the global market machine begins to move, then others likely will follow shortly.
When investors analyze the global markets in terms of price action, it is evident that the market is now giving Chinese stocks preferential treatment. Names like the iShares MSCI China ETF (NASDAQ: MCHI) have outperformed the broader S&P 500 index over the past quarter. If price action is any indication for investors, then this factor shows that China’s economy might be going on a new path higher for the rest of the year.
