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CSE of the Colombo Stock Exchange yielded a 125% increase in 2009. Sri Lanka bested the return of the Shanghai-based SSE Composite Index, the proxy for the largest publicly traded companies in China.
According to the latest readings from Investors Intelligence and AAII show that newsletters and small investors are very bullish in the near-term. This could be a major warning flag about the potential short-term performance of the equity markets.
Trade disputes between Beijing and Washington over exports of tires, chickens, steel, nylon, autos, paper and salt are multiplying and further damaging the already tense relationship between the two economic powers. The Obama administration says it only aims to protect the country’s rights, but the Chinese counter that the United States started the whole thing by launching an unprovoked attack.
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