Buy In or Buyer Beware?

Here is a paradox: America's economy founders and its markets take off, while China's economy booms and its markets fizzle.

Chinese official GDP resumed its high-growth trajectory after the 2008 stimulus, hitting 9.2 percent, 10.4 percent, and 9.2 percent in 2009, 2010 and 2011. But stack S&P 500 performance against that of China's stock indices – especially the onshore ones (Shanghai A and Shenzhen A) – and the picture changes dramatically.