This news, combined with reports that China had pared back its 2012 growth forecast to 7.5% has created a great deal of turmoil for funds like TAO and EWH. In a matter of days, both funds have given back multiple weeks' worth of gains.
As we have seen in the opening months of the year, there is still a great deal of uncertainty surrounding China's real estate market. While single events may be able to drive funds like TAO to short-term bounces, the long-term picture is still too cloudy for my taste.
Rather than roll the dice with a single sector, investors looking for a safer bet on China's marketplace are still better off sticking to broad-based options like the iShares FTSE China 25 Index Fund (FXI). As usual, any exposure should be kept small. We have been reminded over the past few days of how volatile emerging markets can be.
Written by Don Dion in Williamstown, Mass.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV