Stocks: The Chinese Correction?

S&P says charts for a fund that tracks a key Chinese index look "downright scary", and it could be due for a major pullback

While our technical focus tends to be on the U.S. stock market -- with some analysis of the the UK's FTSE and Germany's DAX indexes -- investor fund flows have been heavily weighted towards overseas stock markets. Investment dollars tend to migrate to better returning assets, and, in this case, much more risky assets, in our view. It seems like any stock from China is a no-lose investment. The view of some speculators appears to be "just keep throwing money at the Chinese momentum, and you're on our way to quick riches." It kind of reminds you of the dot.com days. Our warning: Don't be the last one out the door.

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