See the chart below. While growth falling off a cliff from September to November is now a fact for the revisionist historians to chew on, the reality is that both the Chinese and Taiwanese stock markets proactively predicted the growth slowdown for the 6-9 months prior to the news hitting the tape.
Now what? Well, that answer is fairly straightforward for Asian governments – jus copy Greenspan – cut rates to zero, cut taxes, and create stimulus.
We remain long Taiwan via the EWT etf.
Keith R. McCullough
CEO & Chief Investment Officer