Sunday, March 04, 2007

Another Take on China: TCS Daily - "Our Siamese Twin"

You know, I think that over the last week the future for China has been more on my mind than the markets' movement. In a few months this last week will be just noise, probably. In the long run, there are much more important things to think about! It's true. We (the US and China) probably have more interests in common than we have figured out.

The Chinese banking system is a real concern. Much has been written about that. At this stage of my practice, for the foreign component of the portfolio, I don't really like country-specific investing; I want quite a lot of diversification, even now when we have such high correlations. And I want the ability to control value/growth and capitalization size characteristics in foreign holdings. Just my style I guess. You can imagine how I feel about investing in the stocks of individual companies!

But I won't say never on that, or single country ETFs or funds either. To everything there is a season, as has been said. China is getting big, will be very volatile, will have high average growth, if they do not mess it all up. We, mankind, are very prone to that. Some humility is in order. An article I found useful and thought-provoking from TCS Daily....

TCS Daily - Our Siamese Twin

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