NEW YORK (ETF Expert) -- The biggest news over the weekend was China's surprise Christmas-day decision to hike its interest rates. China is looking to slow down price inflation. And, not surprisingly, some of the worst-performing country ETFs on Dec. 27 were those with heavy exposure to the materials and energy segments.
For example, Columbia, Chile, Brazil and Mexico were among the biggest losers. (Review my recent commentary, "China Decides How High Reflation Trade ETFs Will Climb.")
In general, this tells us that when China reins in rates, the market may believe that the second largest economy may require less coal, steel and copper from resource-rich nations. It may be a knee-jerk reaction, but it's a predictable reaction nonetheless.
On the other hand, China's proactive response to curb price inflation isn't necessarily a burden on its middle class.Consider five of the best-performing country ETFs on the last Monday in 2010: iShares MSCI Singapore (EWS), iShares MSCI Malaysia (EWM), iShares MSCI Taiwan (EWT), iShares S&P TOPIX Japan 150 (ITF) and Market Vectors Indonesia (IDX). China raised its rates, and the neighboring region's ETFs rocketed higher?
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV