Reported in Marketwatch:
"China’s economy grew by 7.9% in the fourth quarter compared to a year earlier, with the data beating economists’ expectations and feeding into optimism that world’s second-largest economy was on an improving trajectory.
The gross-domestic-product growth represented an increase from 7.4% growth in the third quarter and 7.6% growth in the second quarter. The Chinese government has a target of 7.5% annual GDP growth."
It is not surprising that China economy starts to pick up as Europe recovery should have helped in the exports of goods for China. Needless to say, China stocks should be on our agenda this year.
Shanghai Composite is now 2315, up 30 points because of the good news. We expect the index to go up to 2500 before facing a resistance.
Of course, as mentioned in our last article, I am aiming at a 2-3 years long term play in shipping industry, which is directly related to China and Europe. Someone ask me about Yang Zi Jiang, NOL and Cosco. This is definitely something I would consider in my long term portfolio list. I am just waiting for the right time to pull the trigger. Going in before earnings would be short term play. Going in after a good earnings results would be a long term play. Short term wise, better to wait for it to bounce off $1.02 convincingly, when accumulation and consolidation is about to finish.
And coming quarterly earnings results in early February will provide me the insight whether this shipping industry has REALLY recovered. If not this quarter, it might be next that gives a good result! And I will be focusing closely on it. The last quarter results of Yang Zi Jiang is on 7th Nov, I expect close to 7th Feb will be the coming one.