Don’t Invest In Chinese Stocks – Unless You Know Exactly What You’re Doing

The Chinese economy is the second largest in the world, and has been growing at an impressive rate for the past 20 years. However, China has in the past few years taken measures (like those of the US that led to economic bubbles) that will eventually pop. Also, China’s one child policy has for the first time since the 1960′s resulted in a shrinking labor force and a top heavy (age-wise) population that will only get worse as long as the law is in place.

That means that you will see a large reversal in their stock market prices once the pop happens, the problem is timing the pop. As I am a fan of safe investing and treating money with care instead of gambling (an exorbitant amount), this is an area of investing I will steer clear of.

In regards to investing in US Stocks, you also need to know what you’re doing and stick away from low market capitalization stocks or ones that sound fishy such as exploratory mining stocks or small shipping companies – check that your market capitalization is at least $1 Billion USD.