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Quote of the Day
An analyst on Apple’s earnings:
“Even though revenue and earnings numbers may be good, a lot of those eye-popping growth numbers were already known and expected this quarter.”
-Darrell Cronk, CIO of Wells Fargo Investment Institute
Our view: The best companies don’t always make the best investments. The price you pay matters.
After a crushing year for Chinese stocks, investors are turning to options to bet on a comeback reports the WSJ (paywall).
What’s going on?
• Chinese stocks have suffered in 2018. Two reasons cited by investors are the trade war with U.S. and poor company fundamentals.
• Bullish options on the most popular Chinese ETF, iShares Large-Cap China ETF (FXI), reached the highest level in 5 years as investors bet on a turnaround.
Follow the money
Fred Ruffy, an analyst at Trade Alert, said some institutional players are positioning themselves for an aggressive rebound over the next two months.
How to trade it
There are two China ETFs we will go over.