Still, some high-profile investors aren’t so upbeat on China. The world’s second-largest economy is headed for a “hard landing” in 2012 as weaker foreign demand hurts exports, says Gary Shilling in a Bloomberg report. Export orders declined in January despite gains in manufacturing, according to a report this week. Investors are also trying to forecast whether China loosens monetary policy to curb inflation and the real estate bubble.
“They slammed on the brakes,” Shilling said in the Bloomberg report. “Transition is not easy because they are geared up to exports.”
Emerging market ETFs are breaking above their 200-day exponential moving average.
Vanguard Emerging Markets
Full disclosure: Tom Lydon’s clients own VWO.