FAQs Frequently Asked Questions

Stock exchanges in other countries often correlate with the US market on at least a week-to-week basis. For egs, the ETF FXI which corresponds to the Chinese stock market (Xinhua China 25 Index) from 2005-2007 showed a good degree of correlation yet well outperformed the US market, and it was not unusual to see leading chinese stocks trading on the US markets doing very well. When the US market would suffer weakness, the Chinese market would also pull back, but when the weight of the US market came off, the Chinese market would often soar. Keep in mind these correlations were sometimes delayed by a couple weeks, but invariably, the Chinese market would roar ahead of the US market over these years.