Chinese/Hong Kong investments

wombat42_2

EdInvestor wrote: »

Are you familiar with the concept of "Momentum investing" wombat? Since you have the time and energy to devote to moving money regularly (I am far too lazy to do this myself) the idea might be one you could investigate.

It basically just involves watching the table of rising funds and then moving into a sector when it starts to get popular, and moving out of it when the funds drop of the top performers list - a kind of 'go with the flow" approach.

You are in the right sector at the moment more or less, though a bit of diversification into other Asian/emerging markets might achieve the same result but reduce your risk.

Try to find a broker/fund supermarket that doesn't charge for switches if you like this strategy.

http://www.trustnet.com/ut/

I am into that up to a point but choose to have a strategic view as well.
http://investing.thisismoney.co.uk/cgi-bin/digitalcorporate/thisismoney/fundhome.cgi

I dont currently pay for switches. I was in an Asian fund a few months ago. Obviously Japan is best excluded from an Asian fund but also it is annoying that most Asian funds include Australia.

munk

wombat42, just read this article you might find interesting: http://www.citywire.co.uk/News/NewsArticlePrint.aspx?VersionID=96289

Suggests China economy could well go strong for another 5-10 years until they either suddenly realize they have too many airports or US stop buying their products (that's the ultra abridged summary!).

It's a dilemma for me because I have to invest for a cautious portfolio - whilst I'd like to up the ante and invest more than the current 1% of the total portfolio in China, justifying the volatility is another matter. For myself I'm looking to go up to around 10% of my portfolio in the Gartmore China Opportunities fund or similar, still undecided.

wombat42_2

munk wrote: »

wombat42, just read this article you might find interesting: http://www.citywire.co.uk/News/NewsArticlePrint.aspx?VersionID=96289

Suggests China economy could well go strong for another 5-10 years until they either suddenly realize they have too many airports or US stop buying their products (that's the ultra abridged summary!).

It's a dilemma for me because I have to invest for a cautious portfolio - whilst I'd like to up the ante and invest more than the current 1% of the total portfolio in China, justifying the volatility is another matter. For myself I'm looking to go up to around 10% of my portfolio in the Gartmore China Opportunities fund or similar, still undecided.

Thanks

It may be a gamble but not quite the gamble often portrayed, as Gartmore China Opportunities fund etc almost entirely invests in Hong Kong H shares which the article suggests may well prosper even if China shares fall as the Chinese may well switch to the cheaper Hong Kong H share valuations.

Nothing else looks appealing right now in world markets so I will stay put with a combination of Gartmore China Opportunities and Threadneedle Opportunities but am closely watching market trends.