Last year Chinese mutual funds returned upwards of 70%-90% in 1 year! So far this year, they've returned 33%!
Should I invest 1/3 of my portfolio in them in exactly 1 month?
2007-02-13 18:56:48 · 9 answers · asked by Young,risky,& looking 4 returns 2 in Business & Finance ➔ Investing
About 10% of your portfolio would not be remiss. 33% would subject you to a great deal of specific risk. And no they have not returned 33% so far this year. The average has been about -5% so far for Chinese funds. When a market moves up so much in so short a period of time, you can generally expect some profit taking. Chinese stocks are very volitile. A 20% drop is not to be unexpected. That would be the time to stock up.
2007-02-14 01:07:38 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Sure if you want to invest in an oppressive communist regime!
Good luck with that in the longrun!
Tomorrow we could learn that the #'s are all fixed or the government could nationalize businesses. That risk is NOT priced into china today. Everyone just looks that the 1.3B people market and the potential .....
If you want growth in a developing market with over 1B people market size. Look to India. They have the advantages of language (enlgish - for international business) and democracy, which is better suited for capitalism.
Right now china has grown faster since its communist regime can enact growth policies faster. They do not need to worry about public opinion (vast majority of chinese are dirt porr and not benefiting from the growth yet). India must deal with public opinion, which does resist change, especially if the change isn't seen to benefit the huge poor majority directly. But in the longrun, democracies have been proven to be more efficient than communism. If communism was more efficient in using resources and building economies, then we would all be part of the USSR today!
NOTE: Dont put 1/3 in india though. Maybe 1/10 at the most. Unless you live in India.
2007-02-14 00:39:42 · answer #2 · answered by random_market_investor 2 · 0⤊ 0⤋
Be careful investing in China, the Chinese economy is a fairly hollow shell that is proppe dup by the government. THose of us who live here will not usually invest in anything in China because we see how business is run here, and it's scary. Remember that while the numbers may look good, check and see where then numbers come from. I will bet the government (since everything in China is run by the government) and realize they only want to look good.
If you invest, things will probably go well for a while, but the Olympics might set some things off, and the cards might all fall down.
2007-02-15 17:29:20 · answer #3 · answered by Chris A 3 · 0⤊ 0⤋
1. Forget the bank pusher - money in bank not safe as loses purchasing power after taxes & inflation.
2. Chinese govt trying to rein things in so could be short term bump. Might want to wait.
3. PGJ an etf you can start tip-toeing into. TDF a solid play of the whole area.
4. EWA is Austrlia etf. China buying Aussie resources so good indirect play + safer.
2007-02-14 01:30:46 · answer #4 · answered by vegas_iwish 5 · 0⤊ 0⤋
Risky business. I think the China run is gonna level off or fall out but I thought that last year. I would invest no more than 10% in it. No way in hell you should ever invest 1/3 in such a risky market. Just my opinion.......good luck
2007-02-13 19:01:11 · answer #5 · answered by allindotcom@sbcglobal.net 4 · 1⤊ 0⤋
You should never invest 33% of your portfolio in anything.
2007-02-14 16:14:45 · answer #6 · answered by Anonymous · 0⤊ 1⤋
China invest's in the U.S., they own 60% of all U.S. "T-bills", cut out the middle man, and just invest in the U.S., the banks are still the safest, even though the dollar fluctuates, it's still the most dependable bank in the world.
2007-02-13 19:01:12 · answer #7 · answered by Anonymous · 1⤊ 2⤋
I think the great wall of bajing is Fabulous!!
2007-02-13 19:00:42 · answer #8 · answered by Unoptrid1aq 4 · 1⤊ 0⤋
yes
2007-02-21 11:35:47 · answer #9 · answered by kayanna123 3 · 0⤊ 0⤋