Food prices are being watched closely, as well. The earthquake killed 12.5 million farm animals and destroyed vegetable crops and irrigation systems that are needed to grow rice.
China’s ETFs were among last year’s strongest performers before declining heavily in the first quarter of this year. In the last couple of months, they’ve experienced a rally.
- iShares FTSE/Xinhua China 25 (FXI): In 2007, it was up 54.8%; year-to-date, it’s down 6.9%. Since March 10, it’s up 19%.
- SPDR S&P China (GXC): It launched last March, and was up for 2007 by 69.1%; year-to-date, it’s down 8.9%. Since March 10, it’s up 19.5%.
For full disclosure, some of Tom Lydon’s clients own shares of FXI.
