Fear of a hard landing for China’s economy has led to steep drops in China-oriented funds, offering investors bargain prices for solid investments.
“China's economic importance is such that ambivalent long-term stock investors should move beyond the question of whether to invest and focus instead on how much, and how,” writes SmartMoney columnist Jack Hough.
China contributed 9.3% of world economic output last year, and its economy grew at an annualized pace of 9.1% in the third quarter. It was China’s slowest growth in two years, but it compares with just 2% in the United States, Hough points out.
Hough suggests investors should keep a stake in China between 1% and 10% of their portfolio, then discusses different ways to do so, through various funds or direct investment.