Everywhere you go you hear China this and China that. I think China is a major force in the global economy and will be one for quite some time, however right now it is a bit overvalued. At this time I would only invest in China as a hedge against them economically dominating and undercutting our blue chip companies, as well as any military moves they may make against us (very unlikely but a hedge is a hedge).
If not, China is not very transparent and kept afloat by a smart but inevitable to fail FX policy. There are reasons why everyone is Gaga over their economy. The Chinese government controls it and WANTS the world to give it capital during this great time for it demographically. Eventually gains will be cashed in as risk appears to outweigh return and we will see a very healthy but strong correction over there. Long term I am very bullish this country but would not buy anything in China until it gets much cheaper.
$21.51 (04/24/07)
Agree
Disagree
