Everywhere we look these days, we see pictures of how China is confounding the skeptics…
Like most assets, Chinese stocks enjoyed a huge rally off their panic lows of late 2008 and early 2009. China's benchmark stock index nearly doubled in just six months. Then, the overbought market began drawing big-name skeptics – like legendary trader James Chanos – who think China is a huge bubble ready to burst.
Most Chinese stocks did correct early this year… but have since displayed impressive price strength to resume their bull trends. For example, consider New Oriental Education (EDU)…
New Oriental is the largest private education company in China. The bullish case says, as China grows wealthier, it's going to pay up for more educational services. This makes EDU one of the highest-profile "China plays" on the market. As you can see from today's chart, the bull case is intact and the stock is soaring to new highs.
You can be a China skeptic all you like. But make sure to "mind the market." Right now, it's voting the China story higher and higher.
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