Now Is The Time To Invest In China
Many times I am asked “Should I invest in China?” Many of the experts today say to stay out of China’s Stock market and follow their recommendations and staying in the markets in this country.
I point out however, after July 1, 2014 that may all change and you might what to reconsider that advice and diversify some of your holdings into China. Aside, from the results of the 36-page Fed report that just came out or whatever happens after July 1. There are some other reasons you need to know why now the time to invest in China.
China’s industrial capacity is continually modernizing and expanding. America’s isn’t.
America has been on a war footing for over 10 years and looks like more crises such as Syria, Ukraine and the latest setbacks in Iraq show this isn’t likely to change in the near term.
There is a very real threat to the dollar as the World Reserve Currency from the Yuan or a mixed selection of other currencies.
China is aggressively expanding its capital base, business acquisitions and markets abroad and in the United States itself.
All indicators point to China being able to sustain a high ROI for the near future.
That is not to say investing in China is all that easy. You will have to get used to a different way of looking at the market and how it is run.
The Chinese government regulates the market tightly and you need to be aware of this.
Language can be a barrier. It is not as bad as it once was, as most brokerage houses and the trading firms have English speaking brokers and agents to assist you.
You need to learn how candlestick-trading techniques work, as they are the standard means of conveying stock market data and information in China and the rest of Asia.
Stock prices may seem to be manipulated at times. Appearances are quite deceiving. Going with market flow is however your best option.
Chinese trading is based on harmony and numerology plays significant roles in how they execute trades. This is confusing at first to the foreigner.
The Chinese do not think in a linier manner as we westerns do. They think in circular pattern, which is no less effective as it is different from the way you consider things.
Keep in mind Family, Group and Relationships (Guangxi) is the driving forces of Chinese society and the market is a reflection of this.
In spite of these issues, many foreign investors make a good return on their money in China. By building relationships and contacts while building your portfolio in China is an excellent way to gain the necessary knowledge experience to trade well in a market that some say is much older than America and the rest of the western world combined.
The Old Trading Houses in Hong Kong and Macau go back hundreds of years and they are still making money and trading in the age of the internet, iPad and Smartphone.