Well, so much for international stocks
When I said that the only way to play this game that makes sense to me is by going long USA and shorting everything else, other players called me a US supremacist or said, "sure, China looks a bit frothy, but aren't there good European companies to buy for the long term". Well, here goes your European investment:
Even if European companies had outperformed their American colleagues by 10% during these 4 months (and why would they?), the currency debacle would cancel all that relative outperformance. As it is, buying foreign stocks is now starting to look like a losing trade. And the Eurozone crisis is just starting.