The average Chinese stock is now selling for 20 times earnings.
If that sounds expensive….you’re wrong. Historically, Chinese stocks have sold for 36 times earnings plus the Chineseeconomy is still growing by double-digit rates.
20 times earnings for a U.S. company growing by single digits is too expensive, but 20 times earnings for a Chinesecompany growing by 30%, 40%, 50% or more is cheap, cheap, cheap.
