Global Investing

Reforms changing the yin-yang of investing in China? – PODCAST

China’s influence on emerging markets, let alone the global economy, cannot be understated. Great strides have been made to build the economy over the past 30 years, but not without its casualties. In a conversation with Michelle Gibley, director of international research at Charles Schwab, I asked her about a new research paper she’s published on why, amid the angst and doubt on emerging markets, she has shifted her views. She’s turned positive on Chinese large-cap stocks and says the China of the past was running out of gas.

Click here to the interview. (My thanks to Freddie Joyner for helping get the audio into workable shape.)

Why New Reforms Make Chinese Stocks Attractive – Michelle Gibley, Director of International Research, Charl…

Americans going abroad again

U.S. investors have started to go shopping abroad for assets for the first time year.

According to UBS, the proportion of mutual funds’ portfolios held in foreign assets rose to 24.5 percent in May from the 23 percent level they kept until then.

From 2002-2008 U.S. mutual funds sharply increased their exposure to  overseas assets, going as high as 26 percent in mid-2008 from 12.5 percent. After the collapse of Lehman Brothers they have cut back to 23 percent.