Is FXI a good buy?

As an investor, I would predict how the China’s stock market would fare in this trade war.

YTD performance of FXI (an ETF for Chinese largest companies) is about minus 7% while that of SPY is about 5%. P/E of FXI is 10 while that of SPY is 24.

FXI would purge when the trade war is full-fledged. Bet your money at your own risk as the outcome of the trade war is not predictable.

The exception is when “E” is increasing fast as indicated in the early recovery of the stock market. To illustrate, the highest of P/E is 124 in May 2009, and it is the best time to buy stocks in recent years.