Chinese stocks have been on an amazing tear during the past year; iShares FTSE/Xinhua 25 China Index, the main Chinese index fund, is up 124% from a year ago. Lots of investors made some nice gains, but is there a correction waiting to happen?
Last month, the US Stock market experienced a sharp decline from the negative sentiment surrounding the sub prime mortgage crisis, but Chinese stocks barely flinched.
Why? Unfortunately, the 2008 Beijing Olympics has been priced into most of the popular Chinese stocks and ETFs, reducing the overall return available on these equities.
In a previous post, I recommended 3 Chinese stocks to research during the Beijing Olympics quarter, however I know believe that investing in China is too popular now, which makes China an unfavorable investment territory. Maybe China will cool off after the Beijing Olympics, but places like India, Mexico, and other emerging nations look more attractive at the moment.
What do you think? Is China still an attractive investment considering the speculative frenzy surrounding the 2008 Olympics?
Want More Global Markets Investing Tips & Articles?
Fill out the form below to join our weekly blog newsletter and we’ll drop you a line when new articles are up. The newsletter goes out once per week
Bio: Tarik is the CEO/Marketing Manager of InvestorTrip.com. He follows a simple diversified value investment strategy that seeks long term equity appreciation. He studies economics at Dartmouth College, and plans to pursue his MBA at Morgan State University this fall. Tarik enjoys reading, playing soccer, and living life to the fullest.
Subscribe via RSS
[...] you may want to consider investing your dollars elsewhere. Although many Chinese equities have the economic fanfare of the Beijing 2008 Olympics priced in, REITs still hold [...]
[...] to other international markets to boom with the Chinese. As Chinese stocks begin to look overbought, the feeding frenzy continues in other developing nations of the world. While Japan and Brazil [...]