Fisher: Don't Let Cynics Fool You About China’s Stock Rally

Is the rally real? Since mid-March’s low, Chinese stocks have jumped 33.6%. Stocks pounded the most in the downturn — chiefly, Chinese growth stocks like Tech — have led the way higher since. It is exactly the kind of steep climb early bull markets routinely feature. Yet almost no western investors believe it is real, hyping myriad reasons why this rally should falter. I can’t be sure March 15’s low will hold. But widespread belief it won’t is part of the “Pessimism of Disbelief” underpinning all big market rebounds I’ve written about for decades. Here is how it works.