How do I take advantage of a rising middle class in china? What stocks would do well, domestic and foreign?
What stock would make money with more Chinese having more disposable income? Cell phone companies in China I would guess and maybe some high fashion. For this you would need to know a little about chinese culture too. I know they probably like to gamble a little more than people in other parts of the world.
Investing - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
Try mutual funds and etfs. Also, try this site, which gives good stock recommendations: http://alpha-investing.com/ But i recommend MCHFX, FXI and CAF. Those are all very good. And as you said, "more disposable income" which means more earnings for banks. FXI and MCHFX both do that. Although, FXI is more heavily invested in financials that MCHFX. CAF is also a very volatile stock, but if you are very bullish on china (like i am) i would buy some of it. I suggest all 3 of the above if you have the money.
2 :
Hi, I do not recommend ETFs or Mutual Funds. Currently the Chinese stocks are over valued. The time to buy Chinese stocks was when the DOW was floating at 7000 points. Sectors I recommend you track are the Chinese industrials. NYSE: FMCN, PTR, ACH, PKX, Stay away from Baidu, or those Internet stocks. Alternatively you can buy American stocks that have huge presence in China. Chinese people really like eating KFC Chicken. Chinese people do not gamble any more than Americans do. Please don't say that if you yourself admit to not-knowing much about Chinese culture.
3 :
There is no rising middle class in China, only the rocketing price of estates. And due to the later one, the middle class actually stops growing if not declining. Most of their income are sucked by loan repayment. The stock market in China is full of craps. So the only thing you may take advantage of, is the rocketing price of estates in China. However, with the money for a decent apartment in Shanghai, you probably could buy a house in a decent area in California. And a bubble always bursts at the end, you just don't know when it will.
