This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

How (Not) to Invest in China

Before you read any further, note that this article is intended only for people interested in making more money than other people. It is very complicated and very few people in the world actually are capable of doing it right. If you aren't interested in beating the mean, buy everything indiscriminately with the iShares MSCI ACWI Index (ACWI - Get Report)(ACWI) exchange-traded fund, which is a benchmark for global stock performance. For the rest of you, read on.

How do you identify if you are making a "dumb decision"? Let me illustrate by showing how you're likely allocating your time poorly. I'd say you spend more time shopping for quickly depreciating assets in your lifetime than you will those that are likely to increase in value. In any given year, you probably spend more time shopping for your weekly groceries ($200), than you do for your car ($20,000), than you do for your home ($200,000), than you do for you investments ($?).

Here are the most commonly fumbled investment steps.

Step 1: Figure out what you (don't) want.

In case you didn't know, the Shanghai market has been kicking the crap out of the U.S. market over the last eight months. So, you want to invest in China? This is a once-in-a-lifetime opportunity for me to tell you that you're doing it wrong. Your goal of investing should be "to make money." Granted, I learned some really fancy stuff in college. According to my probability and statistics class that also would mean that your goal is to "not lose money." Did I lose you? I hope not.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ACWI $60.91 0.00%
BIDU $203.75 0.00%
SOHU $52.62 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs