Monday, January 11, 2010

How I'm Investing in China

As I refine our investment strategies and plans for 2010, I am consciously excluding direct investments (e.g. China ETF, Chinese company stocks) and looking more at companies with a growing business in the China. The product issues from the recent past, which include melamine in food products and lead paint on children's toys, have led me to believe that the safety standards of Chinese companies need to be improved before I directly invest in Chinese companies. At this time, the safety issues with Chinese products still seem to surface too frequently. Over the weekend, the Associated Press reported another product safety concern with children's jewelry containing too much Cadmium, a toxic metal.

For now, I will invest indirectly in China by focusing on global companies expanding their presence in China, since they will benefit from China's growing income per capita. For example, reports that china car sales surpassed the U.S. in 2009. I would also expect demand for other consumer discretionary products and consumer nondiscretionary items to also be growing similarly.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial or investment advice. Please consult a professional advisor.

Copyright © 2010 Achievement Catalyst, LLC

No comments: