President Trump's Take on Chinese Stocks: A Comedy of Errors

Chinese Stocks Attempt a Rebound

So it looks like the Chinese are finally trying to rebound from their five year lows. It's about time! I've been saying for years that China needs to make a deal and get their act together. Maybe they finally realized that I'm right and decided to take some action. Who knows?

The Optimistic View

"One of the best trades for Chinese assets has been to be long bonds," says Marko Papic Chief Strategist at Clocktower Group. Now I'm not a financial expert but I do know a thing or two about making great trades. Believe me nobody makes better trades than me. So if Papic says it's a good trade it must be true.

A Recovery in the Chinese Economy

"Would a recovery in the Chinese economy and the stock market be the end to that multi year rally in Chinese bonds?" Papic asks. That's something to think about for all you global bond investors out there. I'm sure you're all waiting with bated breath to see what happens. When yields start going up you will know it's a bottom in the economy. And let me tell you folks I know bottoms. Nobody knows bottoms better than me.

Uncertain Times for Chinese Bonds

Now what happens if Chinese bond yields start to climb? According to Papic that would likely mean investors are rotating out. But are they ready to buy stocks yet? It's hard to say. Look I've always said that you gotta be smart. You can't just jump into something without knowing what you're doing. And I guarantee you China doesn't know what they're doing.

Chinese Stock Market Gains

The Shanghai composite closed more than 1% higher Thursday recouping some of its losses for 2014. Wow what a comeback! But let's not get too excited. We still need to address the core concerns of investors like the property sector and U.S. China relations. Believe me folks nobody can address those concerns better than me. Nobody.

A Change in Leadership

Beijing has announced the dismissal of the head of the securities regulator and replaced him with someone else. Typical Chinese move. Always changing things up. Look I've hired and fired a lot of people in my time so I know a thing or two about leadership. And let me tell you China could use some of my leadership.