Comments on: Chinese Stocks: Too Hot to Handle?

By: Shadox

Shadox — Sat, 17 Nov 2007 11:43:27 +0000

Money Blue Book – you may be making a bucket load of money right now, and you may cotinue to make bucket loads of money for years to come, but your investment strategy is extremely risky. By your description it seems to me that your portfolio is not nearly as diversified as it should be. Good luck to you!

I don’t know whether the Chinese stock market will hold up, continue to climb or drop like a ton a lead, but I do know this: stock markets rarely maintain a straight line trajectory. Stock markets that rise dramatically over a certain period, have a nasty habit of reversing course or retrenching for long periods of time. The bottom line is that investing in China – and other emerging markets – is the hot fad of the moment. Hot investment trends should be avoided like the plague. I have a recent post on the subject, it’s called “Fashion Belongs in Milan”. You can look it up on my blog if interested.

By: Thicken My Wallet » Blog Archive » Odds and Ends from the Personal Finance World

Fri, 16 Nov 2007 09:58:23 +0000

[...] Sun’s Financial Diary has an interesting take on investing in Chinese stocks if you are thinking of investing [...]

By: rstlne

rstlne — Mon, 05 Nov 2007 18:08:35 +0000

I had one Chinese stock, LJ International. I picked it way back when it was a reasonably-valued microcap. This year, it exploded upwards. I sold half my stake in it while it was up nearly 200% year-to-date. I sold the rest of it later in the year when they were late in reporting their financials. It was a tidy profit but definitely risky given their lax approach to accounting.

By: The Sunday Review #45

The Sunday Review #45 — Mon, 05 Nov 2007 12:46:18 +0000

[...] Chinese Stocks: Too Hot to Handle? by Sun @ The Sun’s Financial Diary. [...]

By: Beef Up Your Financial Education and Be Prepared @ The Roundup

Beef Up Your Financial Education and Be Prepared @ The Roundup — Sun, 04 Nov 2007 15:04:08 +0000

[...] Sun’s Financial Diary: I’ve always been intrigued by Chinese stocks, and this report by Sun brings to light just how hot the Chinese stock market is. But with this market going on such a hot streak, you [...]

By: FourPillars

FourPillars — Sat, 03 Nov 2007 16:04:25 +0000

Hi there – great post.

It’s tough to know whether to invest in hot economies and to what degree.

I actually wrote on my feelings about a Chinese mutual fund that I briefly owned.

Mike

http://www.four-pillars.ca/2007/07/03/chasing-china/#more-50

By: Weekend Links: Sailing Away Edition

Weekend Links: Sailing Away Edition — Sat, 03 Nov 2007 13:56:10 +0000

[...] asks if Chinese Stocks are too hot to handle. I think they might be too hot for me. It reminds me of the Internet boom. There are likely going [...]

By: Money Blue Book

Money Blue Book — Tue, 30 Oct 2007 21:16:28 +0000

Well I’m nearly 65% invested in the China and Southeast Asian markets so obviously I don’t think it’s too hot to handle. I was in before the recent boom so I’m definitely in for long haul growth. China truly has great upside…and this is not just dotcom style hype…

Transparency is still a major issue and China will have to address this in the future. I hope the changes are gradual rather than drastic however.
-Raymond

By: The Dividend Guy

The Dividend Guy — Tue, 30 Oct 2007 03:41:19 +0000

I also have trouble investing on my own in China – there does not appear to be much transparency. I may be wrong, but I suspect these companies are heavily influenced by governments and that just does not sit right with me. I even have trouble investing in Bombardier in Canada because of the federal money that company receives.

I will stick with my Global Index Fund! Interest post though…

The Dividend Guy

By: KMC

KMC — Mon, 29 Oct 2007 20:42:58 +0000

I think you don’t need to go any further for an explanation than ‘transparency.’

If I understand the situation correctly, you pretty much have to take on faith that what the company/government is telling you the revenue and profits are for these companies is the truth.

I think that’s less true for stocks sold in the US.

Am I correct in this interpretation?