Becoming your own China stock guru

There’s nothing compelling about books like this. The book spends a lot of time discussing the history of China, then attempts to get the reader interested in the wonders of potential profits in Chinese stocks, but most of the book is filled with non-essential general information. I looked in the back and there is only one direct comment about how to invest… by using ETFs, FXI and EWH. Wow, so that’s all it takes to be a guru on this topic? FXI and EWH peaked in October 2007. While FXI had experienced a steady rise since January 2006, EWH has mostly floundered for eleven years under $15. I say, for those that can directly buy Hong Kong stocks, perhaps TVB would be interesting… except that it’s heading down, closing at $41.35 with the 52 week low at $40.10. I don’t want to own it if it drops, but if you limit your risk to a point and a half or less… you’ll lose a point and change. If you want to be an exceptional China investor, go there, otherwise you’re not going to effectively observe anything meaningful or manage your investments from abroad. Invest in moving overseas… there are great investments in Asia that will arise, but you’re not going to find them at home. That’s like attempting to be a part of the gold rush while staying in your living room or wildcatting for oil in your backyard. As Asia is perceived to be the next gold rush the money to be made is selling the picks and shovels to the eager gold seekers, fools, and less initiated.

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