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.
At the time of publication, Dion Money Management did not own any equities mentioned.

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