Why Investors Do Not Need China in Their Portfolios

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In a previous piece, which can be found here, I wrote the bull case for why investors should have China in their portfolio. I stated in the article that I would follow up with a piece on my true thoughts on the subject.

The article entitled, “Why Investors Need China in Their Portfolios,” appeared in the WSJ several weeks ago. Malkiel author of the best-seller A Random Walk Down Wall Street stated that investors are under-allocated in China, and should gain more exposure to the world’s second largest economy. Malkiel wrote that China is growing rapidly yet valuations are still reasonable.

Malkiel states that many Chinese ETFs are not too pricy with their PEs in the teens. He does not state if this is 13 or 19. Malkiel also does not state where he is getting his numbers. Are they trailing twelve months? Forward earnings? etc. It is easy to get earnings on almost any company in the US from dozens of websites, and of course from SEC filings.

Voss Capital is betting on a housing market boom

Housing MarketThe Voss Value Fund was up 4.09% net for the second quarter, while the Voss Value Offshore Fund was up 3.93%. The Russell 2000 returned 25.42%, the Russell 2000 Value returned 18.24%, and the S&P 500 gained 20.54%. In July, the funds did much better with a return of 15.25% for the Voss Value Fund Read More


The concept of diversification, consists of spreading your wealth (and therefore your risk as well) among various asset classes. Therefore, after careful asset allocation, you will still have your losses minimized in a worst case scenario where one asset class performs poorly the other asset class will perform well.

To read the rest of this article click on the following link-Why Investors Do Not Need China In Their Portfolios