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After gaining a measly 1.45% in July, the Shanghai market continued its downward trend in August. It lost another 13.6% and closed the month at 2397, which is a 60.8% decline from its October 2007 high of 6126.

As the market continues to fall, it is getting closer to the bottom, although no one has any idea how much further it will fall. It is difficult for anyone to call the bottom of this market.

Filed under: China, Russia, Newsletters, Japan, DJIA, Stocks to Buy

"While watching the Olympics, I couldn't thinking about the investment opportunities of the various countries participating in the games," says exchange-traded fund expert Carl Delfeld.

Recognizing that this is not a "scientific" approach nor a primary basis for seriously determining one's asset allocation the editor of Around the World with ETFs speculates, "While it is admittedly a stretch, let's consider what an ETF porfolio of the top ten countries in the Beijing Olympics medal count would look like."

"I hope that while wa

"While watching the Olympics, I couldn’t thinking about the investment opportunities of the various countries participating in the games," says exchange-traded fund expert Carl Delfeld.

The editor of Around the World with ETFs states, "While it is admittedly a stretch, let’s consider what an ETF porfolio of the top ten countries in the Beijing Olympics medal count would look like."

"I hope that while watching the Olympic games many investors were also reminded at how the world is changing and why they need a global portfolio to capture value and growth around the world.

"The U.S. did remarkab

"For the next two-and-a-half weeks, almost all you’ll hear in the news will be related to the 29th Olympiad in Beijing," points out Brandon Clay.

In All Star Investor, he explains, "Beyond this, in 2010, we will see the World Expo in Shanghai and the Asian Games in Guangzhou." So is now a good time to invest in China? Here's the advisor's assessment and his top pick for exposure to the region.

"China has been gearing up for the Games for the past few years. Finally, with a dozen new sports stadiums and a cross-city underground railway to ferry visitors to different venues, China will be on di

Filed under: International markets, China, Newsletters, Mutual funds, Stocks to Buy

"When you own iShares FTSE/Xinhua China 25 Index (NYSE: FXI), you own the 'best-of-the-best' blue chip stocks traded in the Chinese market," explains Doug Fabian in his The ETF Trader.

"I had been waiting for what I thought would be the inevitable turnaround in Chinese stocks. Much to my dismay, that turnaround hadn't really materialized -- that is, until now.

"For the past couple of months, the value of the iShares FTSE/Xinhua China 25 Index (NYSE: FXI) has undergone a prolonged move to the downside.

"However

The Shanghai index (SSE Composite Index) - the best indicator of investing in China - is down 54 percent from its October 2007 high of 6124.04. But, for the preceding 14 years, China has been a great long-term investment. Although you can't invest in the index directly, an investment in Chinese stocks of $10,000 in 1991 (when the SSE index started) would be worth over $600,000 at market highs, before taxes and currency adjustments. Because of the correction, now is a great buying opportunity!

For much of recorded history, China has been an economic giant. According to The Economist:

In a follow-up to my article,<!----> A True China Bear, I recommend investors to set their sights on China since there may be tremendous upside in the emerging economy. The Shanghai Composite Index (000001.SS) has fallen to 2868 from a high of 6124, a drop of over 50%. The drop below 2900 marks a new 52-week low.

For the long-term, I’ve written that China may follow and overtake the performance of the Hang Seng Index (HSI).

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The WSJ mentioned "with its stock market down by about half since its peak, authorities in Beijing rolled back a year-old tax increase on stock transactions. The widely anticipated measure contributed to the day's 4.2% rise in the Shanghai Composite Index.

"The Ministry of Finance said it will reduce a tax on trading to 0.1% of the value of each purchase or sale of stock, effective Thursday. The official Xinhua news agency said the tax change, announced after the market closed Wednesday, is 'an effort to boost the equities market.'"

Yes, granted credit deleveraging is not over yet, although one may consider China's long-term move.  We've seen a very intense correction, as the credit deleveraging deflates global asset classes from equities to fixed income.

An additional criterion when considering foreign investment is the currency exchange.  While we will see long-term capital appreciation because of China's bullish GDP growth and associated BRIC economics, we will also see bolstered growth from the country's favorable currency appreciation.

With an increasing rumor the PBoC may be forced to revalue the R

I have had good success using puts and calls to trade on a daily basis. First purchase of FXI at 85 second at 125. Now I sell calls at the money (all premium) and trade the calls up or take profits on down turns.  I will also sell puts into downside market volatility and trade them on the reverses.

Fxi has the best 25 China stocks and these companies should prosper. Its hard to see them not doing well in the China explosion.