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Guess Who’s Coming to China’s Stock Market: Bear, Bull -- or Gorilla?
EWI’s Asian-Pacific Financial Forecast’s special 5-page report on China reveals why now could be the beginning of a new chapter in China’s economic history

By Nico Isaac
Fri, 14 Sep 2012 10:00:00 ET
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China’s Shanghai Composite index is 5 years into the worst bear market of its 2-decade history. And this August, the exchange suffered its 4th straight month of declines for the longest losing streak since 2004.

In a quest to answer the burning question of whether the SSE’s bearish rout is over, the mainstream financial experts are hard at work sifting through every current and potential future quantitative measure under the economic sun. You name it: inflation, industrial production and fixed investments, capital inflows and outflows, etc. And then how it all could change for the better with further interest rate cuts, stimulus packages, drops in banks’ reserve requirement ratio, and tax tweaks.
But when all is said and done, the mainstream's number-crunching marathon becomes just another “Gorilla Experiment” --
The famous Harvard study in which an audience sits down to watch a video of 6 people -- 3 wearing white shirt and 3 wearing black shirts -- toss a series of basketballs back-and-forth. They are asked to count the number of passes made by people in white shirts. When the video ends, the moderator asks what they all thought of the giant gorilla that strutted out onto the court mid-game and beat his chest at the camera. Over half the audience, stunned in disbelief, answered back: “What gorilla?”
Fact is, while the majority of investors sit back watching the usual players in their back-and-forth external data tossing, they are missing the giant, thumping gorilla staring them right in the face:  
The historical chart above is of the Shanghai Composite Index vs. S&P 500. In late 1999, U.S. stocks began their topping process at the start of the 2000-2002 bear market, while the Shanghai Composite was about to launch into a 65% rally over the next 17 months.
Now, flash ahead to the 2008-2012 period of both indexes below:  
Does this glaring divergence between the US and Chinese stock market portend a repeat performance?
Well, on September 6, 2012 EWI’s Asian-Pacific Financial Forecast released a special, 5-page report on China that answers that very question – and more.
Don’t miss the gorilla in the picture. Get instant access to this powerful investigative study and see why the next chapter in China’s economic history may be closer than you think.

China, India, Japan, Australia and Beyond: Ride the 2012 Trends with EWI's Asian-Pacific Financial Forecast Service 

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2. The Asian-Pacific Short Term Update (Tue, Thu, Sun)
Timely analysis and forecasts for the major stock indexes in Japan, China, India, Australia, Singapore and Hong Kong, plus occasional updates for Taiwan, Korea and other Asian-Pacific nations. Editor and award-winning market technician Chris Carolan keeps you abreast of market moves between the monthly Asian-Pacific Financial Forecast issues, while also providing valuable commentary on debt and forex markets.
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Trusted since 1979, Bob Prechter's straight-talking Elliott Wave Theorist is the bedrock of EWI analysis. Delightfully contrary, refreshingly logical and downright accessible, the Theorist is a must-read for every independent investor. You get thought-provoking analysis and forecasts on the intermediate- and long-term direction of the financial markets, critical trends in investor psychology plus timely in-depth research and insights you're guaranteed not to get from any other source.  
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