Should US Invest In Foreign Stocks?

When investing in foreign stocks, and in this case Chinese Small Caps, it's important to study the fundamentals, and technicals.

A few small companies are looking very attractive these days. Many down over 60% from '07 highs. At what point do you take the risk and start buying? Now might be an ideal time to begin accumulating here and there. Nothing to large, but a few percentile of your overall portfolio won't add much risk, and in the end may be very rewarding.

With the 2008 Summer Olympics rapidly approaching, one must ponder the possibility of the negatives being factored in the perception the investors have of China. As many star athletes refuse to compete in this years competition, the view of China has been negative. This combined with the global slashing of stocks worldwide opening 2008 has the Chinese stock market over sold entering Q2 2008.

Finally, The Chinese Yuan is without any doubt one of the healthiest currencies in the world, arguably the number one. With the inevitable Yuan float upcoming, global forex traders will flock into China, and most likely, into Chinese companies. Prices here in early Q2 '08 are very attractive, and could prove to be a great manoeuvre by year's end.

Shane Burke - Chinese Small Cap