nelsenryan82
Registered User
- Messages
- 11
I think if you want to invest in China, it is one of the few places where buying the index is not to be reccomended. Go for a fund with good management (if one exists) or invest in something that derives a large portion of it's revenue or expected revenue from China. Japan is another avenue...
surely the Chinese govt, wont have a major correction or rock the boat before the Olympics
surely the Chinese govt, wont have a major correction or rock the boat before the Olympics
This is one of the fallacies underpinning the bubble in the Shanghai index. It would be an act of outright lunacy to invest there having done even the most cursory of basic research.
What do you think of putting 10% of a Quinn monthly premium (not much - maybe 700 Eur monthly total [currently filling in form]) into China, 10% into Japan, and 10% into emerging markets? The Quinn 'China Freeway' is "designed to track ... the FTSE/XINHUA China 25 Index", and described as offering "excellent growth prospects over the long term".
Do you think China will follow the Nasdaq behaviour and take years (if ever) to recover?
All you can do is invest in a manner suited to your risk adversity. The FTSE/XINHUA China 25 Index won't have enjoyed anything like the mad bubble-like explosion in the Shanghai Composite (where companies regularly trade at a 100% premium to their international listings). That doesn't tell you whether or not it is overvalued or undervalued though.
I personally like exposure to Japanese assets - property and stocks - because I think the currency situation is favourable for Euro investors if nothing else.
If you buy the China story by all means invest there. The fact that you're dollar cost averaging into the fund will help reduce the volatility of your investment in any case.
surely the Chinese govt, wont have a major correction or rock the boat before the Olympics
market is/was down 8% at close according to this article.
http://www.forbes.com/2007/06/04/china-bayer-palm-markets-cx_jal_0606video1.html?partner=yahootix
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