How can the average Joe invest in China without getting reamed?

Question

I have but a few deflated dollars; I've worked my tail off for many years and would like to do what the wealthy do-that is, invest overseas. How do I do this without running into some future candidate for a 60 Minutes episode where the guy jets off to Israel and cannot be reached? I'm serious, no wonder people live on credit-what's to invest in that doesn't go south at the slightest hint of any problem-basically all stocks are over valued and will eventually go broke,more than likely,so what's the point ,unless you get dividends? Its' just a big round of Musical chairs, last one standing looses, if its' on the news its' already too late,etc,etc,....

Answer 1

If you accurately predict a stock market collapse you can make a fortune going short. Buy puts against the indexes, or buy some exchange-traded fund(s) that bet against a particular index. Some of them are leveraged 2-1. Go to Yahoo! Finance and enter Ultrashort in the ticker look-up.

If you want to invest in a basket of Chinese stocks, there is an exchange-traded fund with the symbol FXI. There are probably others but I don't know the names or symbols. If you want to bet against the Chinese stock market with 2-1 leverage, I think the symbol is FXP (it will be in the Ultrashort list). I made some short-term profits betting against the financial sector. Obviously I should have made a huge long-term bet but I'm not that confident of my predictive powers. The collapse of financial stocks has been in the news for months, but that's one trend that just keeps on going.

Answer 2

You got it man, I don't think you are an average Joe.

I think the easiest way to achieve what you want is to invest in ETFs. You have many choices. From specific indexes to broad markets. However not all wealthy people who invested overseas are really happy about it, especially in Asian markets. Shanghai is 50% down and still crashing. And most other Asian markets are not far behind. It is difficult to give you an advice to buy or short because I have no idea (and I doubt most people neither) if these markets are close to a bottom or not.

s***w stock markets, they just became like a casino. What about investing in a real business?

Answer 3

adrs on the general markets or h-shares through your brokerage