I like the China ETFs that I can option (covered calls)...Yeah, boring and not profitable this year. Just wondering what percent of a your portfolio is in China?? One "expert" the other day said 40% should be there. I have heard 5-10% or 10-20% in Asia/China many times. So what is a good balance? Thanks in advance...
China has been in a choppy, grinding downward bear market over the last year and mostly sideways over the last 10 years. Wouldn't say any of your money "should" be there right now or any time. What in the chart suggest to you the desirability of having money there at all? That said, reasonable plays with stops are always appropriate for any market.
China used to be better than the U.S. Not so now. Once I parked a lot of money in HAO because it was dependable.
During the Great Recession the US rebuilt 1 major bridge. China built over 140, I believe. During the recession they worked on their infrastructure...The US reminds me of Eastern Europe...Just my view. The new "Silk Road"...Railroad to Europe. They are stealing all of the US intelligent property and getting away with it. Their hard/forced working people. Their business connections to Asia. Other countries are going to stop using the dollar for oil transactions. I could go on and on...We still buy their junk (not junk anymore) at Walmart/Target. The US could hand them Taiwan...Not likely, but you never know. They took over those islands in the South China Sea that 4 countries claimed. Their education is very good. Yes, they copy, but don't innovate...But it still makes them a ton of money. How they are working to control most of Africa!! They are managing major ports around the world. They have a fair amount of natural resources (compared to places like Japan). A huge lower middle class. A fairly large upper class. A fairly stable government. A sleeping giant. They gain their education from other countries and bring it back home. They worry about bringing dishonor to their family. BABA. How much US treasury bonds they hold...And could unload at a moments notice. Is that OK for a start?? So yeah, China is like owning gold and silver coins to me...Hope I never need to use them. but I sleep better at night with some around me.
You know what everybody knows about China if they care to. Yet investors are not "plowing into China stocks" in a big way.
Many gamblers in that country...Housing is just one area they gamble. China ranks #3 in the world!! China’s land-based and online casinos are banned, but state lotteries, sports betting, and Mahjong are still available. The total annual income from those kinds of gambling exceeds $50 bn and continues to grow considerably. Macau additionally brings more than $21 bn. Unlike mainland China, there is an opportunity to play in foreign casinos. Therefore, 2/3 of Macau’s gambling revenue come from the mainland VIP players. Although the authorities are struggling with this, because China has a growing problem gambling among children and teenagers. According to H2G for 2016, China ranks second worldwide in terms of money lost in gambling — $62.5 billion, including Macau and Hong Kong. China holds leading positions in the world in terms of profitability of gambling industry, constantly competing with the USA for the first place. Despite continual fluctuation in profitability, connected with government anticorruption campaign, outflow of high rollers from Macao, government’s unwillingness to increase the amount of gambling zones in the country and to legalize online casinos, every year gambling revenues in China reach billions of dollars and make up over 50% of budget revenues. A considerable part of total gambling revenue is generated by developers of mobile games in China. Developers’ revenues have risen beyond $5.5 billion, and this figure can reach $11-12 billion by 2019. Besides, such gambling sector as e-sports is well developed in China. There is a state program that encourages e-sports development and supports players, who annually take first places at international tournaments. Despite the fact that the official sale of e-sports software is forbidden, Chinese game studios supply ingenious developments for foreign companies. Working on an outsource basis, Chinese developers get huge salaries.
https://www.bloomberg.com/news/articles/2019-01-29/foreign-investors-buy-record-amount-of-chinese-stocks-in-January Money moving into China...