It is certainly exciting to watch a stock like Baidu(BIDU Quote) trade every day. The volatility is wild; the stock regularly moves 5% to 7% in either direction on a given day, which makes it great to trade.
However, for the individual investor, Baidu is much tougher to handle. Sure, its year-over-year growth is more than 100%, but it also trades at roughly at 65 times earnings.
Liquidity seems to be flowing back into Chinese stocks, sending a select group higher. Last week, shares of Fuwei Films(FFHL Quote) surged some 100% on no fundamental news.
What has confused me about Chinese stocks is why, in general, there seems to be a divergence in valuations between these and U.S. stocks. Lots of China-based stocks have tons of cash on their balance sheet and hardly any debt. ...
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| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,309.92 | 1,091.49 | 2,138.44 | 32.31 |
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