Investing in the Chinese Playground in 2017
In spite of Trump’s anti-China talk and actions, Chinese stocks currently seem to be the most stable option for 2017.
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Looking to the future is a vital trait for successful online stock trading. And with 2016 coming to an end in a little more than a week, you just can’t help peering over the horizon. We’ll soon be in the New Year, and for stock traders, that means planning for it well in advance and anticipating the changes and challenges that come with it. Now what you need to prepare for is ensuring that you don’t lose any money in 2017 through some poor decisions. The challenges in 2017 could be greater since we have a new president elect, someone who has painted a picture of instability during his campaigning. He has pledged to improve US manufacturing and revive old fashioned means of energy generation such as coal. He has been at loggerheads with Silicon Valley for the tech companies’ reliance on immigrants. Why China Is Considered Stable Some experts feel that the US economy will be more subject to mood swings and unpredictable policies in 2017. These experts suggest looking to China for some stability. China has a policy that is already set and is not prone to wild policy shifts. Its Yuan has risen back to 2009 levels. The Dow Jones Shanghai Index has also managed to get itself balanced at 50% above the level it had before the 2015 speculative bubble. It has taken lesser than 10 years for China to shift from an exportdriven economy to more of a consumer-driven one. Chinese consumers are at that stage in their lives where they can spend a lot, though the demographic chasm could get wider. Some Successful Chinese Stocks You can invest in stocks in Chinese-origin companies right here in the United States. You have one of the most successful Chinese companies, and kind of a Chinese version of Amazon, Alibaba (NASDAQ: $BABA) that is holding $90. This figure is close to its first trade back from 2014. Another successful company, the social network Weibo (NASDAQ: $WB), is currently below $46 which is close to its $53 all-time high. You also have a great ETF that tracks 50 of the largest stocks of China, the iShares FTSE/Xinhua China 25 Index (NYSEARCA: FXI). This yields 3.6% and is currently valued at around $35. And you don’t need to delve too deep into the Trump administration’s China trade war talk for the simple reason that both the economies need each other. All the talk going on is merely an example of politics. China can be considered the most stable option in your portfolio for 2017.
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