CHINA ETF - FXI - 2009 to present = sideways

Look at all of the large drawdowns across the same price range.

2009 = 20% drop
2010 = 18% drop
2010 = 14% drop
2011 = 38% drop
2012 = 20% drop
2013 = 25% drop
2014 = 18% drop
2014 = 13% drop
2015 = 11% drop (so far)

From 2009's top until present - China is flat (measured by FXI), yet it has had MASSIVE VOLATILITY in price across a large price range. All of that "indigestion" (nearly 6 BEAR MARKET MOVES IN 5 YEARS!!!!) has led to a nice rally here at the end that has captured the world's attention. Their IPO market has stocks triple, rise 300%, on opening day. This action is what bubbles are made of.

What does the next 5 years hold?

Would you buy and hold from right here for 5 years?

Tim June 18, 2015