I remain rather skeptical of that claim that retail sales in China were up 13.4 percent last month after a 13.2 percent year-over-year increase in July.

In fact, about the only companies that are upbeat and reporting sales growth are luxury goods retailers, whose customers are wealthy enough to be generally immune to the prevailing economic conditions and state-owned enterprises.

Portfolio holding Belle International (Hong Kong: 1880, OTC: BELLY) unfortunately falls into the category of retailer that has been experiencing tough times.

At this point I believe our best bet is to exit Belle International, despite the fact that it still likely has long-term profit potential. With a gain of 282 percent on the table, I see little reason to leave that money on the table when it appears that retailers and consumers will continue to have a rocky relationship for the foreseeable future.

Sell Belle International to lock in our solid gains.

Read More…