Thursday, June 19, 2014

China: The Risk Of A Crisis Is High

China is the second largest economy in the world and if the second largest economy in the world has problems it is join got affect some people. If nothing else, the people who do business with China will be suffering. And that is a lot of people because it is such a huge economy now. It`s just like if America has problems, it affects a lot of people. If Japan has problems it affects some people. So, there`s no question that China will have problems. I don`t know what or when or why but every country has problems somewhere along the line.

What is a little bit unusual is that it has been a long time since China has had problems. That is extremely unusual. That is one reason I am not buying many shares in China right now.

Related: China Mobile Ltd. (ADR) (CHL), China Unicom (Hong Kong) Limited (ADR)(CHU), PetroChina Company Limited (ADR) (PTR),  Aluminum Corp. of China Limited (ADR) (ACH), iShares FTSE/Xinhua China 25 Index  ETF (FXI);