FTSE/Xinhua China 25 ETF

S

sapper

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Came into a bit of money during the summer and put it into a bunch of ETFs

My plan was to do as Warren Buffet says and "Buy and Hold" but then I read Mark Shipmans "Next Investment Boom" were he recommends you follow the upward trends and dump stock thats going down over a 200 day moving average.

All of the ETFs have done crap except for my holding in the iShares FTSE/Xinhua China ETF which has been doing really well - 20% gain since June and now I'm thinking of upping my investment in it. Mark Shipman says to throw lots of money at an upward trend, but get out when theres been a huge sudden movement in price as it's an indicator of a bubble about to burst.

Now looking at the FTSE/Xinhua China 25 it has farely shot up since June. Can anyone tell me if there's anything to be concerned about in investing in China? Any bubbles about to burst? Been looking for some commentary on the internet but nothing too recent is forthcoming...
 
sapper said:
Came into a bit of money during the summer and put it into a bunch of ETFs. My plan was to do as Warren Buffet says and "Buy and Hold"
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Guess Who recently bought a big train set for himself? -no other than, you guessed it Warren Buffett - He recently bought stakes in three freight railroads: Burlington Northern Santa Fe Corp., Union Pacific Corp. and Norfolk Southern Corp & Billionaire Carl Icahn bought $122 million worth of stocks. They also have eyes further afield.

In China huge play as roads crap - Maglev Train in China do in excess of 500km/h and being developed further by German company (forget its name though). Plane travel to expensive on petrol therefore money to be made in distribution and people transport, at cheaper unit costs. Whenever Buffett makes big moves like this in July you can be sure there is a good prospect of growth. PM me if you want some plays on companies operating trains and infrastructure in the China/HK/US markets.
 
croker said:
Here is one possible reason:
http://seekingalpha.com/article/47746-hang-seng-premium-index-may-soon-have-nothing-to-measure


By the way, I was on the Maglev in Shanghai going to the airport and it only did about 410km/h :)
If they are going to expand it they will need to sort out the rockyness.
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It's achieved a top speed of 500km/h. Train had restrictments imposed, due to an unfortunate German crash - was very bad indeed. No such trouble in China as speed not as fast. Mind you, as a point to point carrier within city centres it will compete extremely favorably with planes even in a country the size of China. Shanghai bumpy - due to the land being so poor (built on sand) along the Pudong expressway - basically very little foundation and had to bore very deep. Uses computer monitor adjustments between each column that are on compression lifts to compensate to the 100,000th of a cm. Could you imagine the rockiness of a traditional train at these speeds. Also very energy efficient compared to traditional modus operandi.
 
sapper said:
Can anyone tell me if there's anything to be concerned about in investing in China? Any bubbles about to burst? Been looking for some commentary on the internet but nothing too recent is forthcoming...
Click to expand...

Shanghai and Shenzhen index are like bankers on acid. P/e's generally going to high and making the dot. Comer’s day look sane. Each week 300,000 new day traders in China that are chasing to little a number of restricted stocks - not open to foreigners. Be very careful in this market and have a stop loss position at all times.
 
I don't know if I would up your investment. China is a huge bubble waiting to burst. That seems to be the consensus anyway. I am in a similar position having made a bit of a gain since January and am now very close to bailing out. For me, it was only ever going to be a short-term punt in the run up to the Olympics because after that all bets are off. Am tempted to hang on a bit longer though as it seems there may be a bit of fire left in the dragon yet. I personally don't know if i'm brave enough to see it out though....
 
I know I know....it's just I've got my NR deposit money burning a hole in my current account....I suppose the problem is that when the bubble does burst it will be a real crash - not a soft landing. I am tempted though....might have a punt and not tell the wife ;)
 
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