Investing in China/India

Solari

Solari

Solari

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Joined
14 Nov 2002
Posts
5,555
Location
Kent
Any bods in here have any opinion on how vulnerable India/China are to falling demand from the US/Europe in this time of economic uncertainty?

I'm toying with throwing some dosh in some/an Asian fund(s) over the next few months (not more than I can afford to lose). Some analysts I know have been giving the nod on China/India but I have a gut feeling that there has to be some sort of catch to it all.

Also, any particular fund managers that people could suggest/recommend in this area would be appreciated. :D
 
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I was considering further China/India investment up until the credit crisis effects really started kicking in ... I haven't done enough research to determine exactly how much impact falling US and Euro demand for China imports and India outsourcing will have - some say that the profits from both are being used to fuel the investment in infrastructure they both required to support significant local growth, reducing their exposure to any recession in the West - if you support that view then it makes sense to invest in them.

I've capped my exposure to BRIC (Brazil/Russia/India/China) at 7% and piled into precious metals (0% to 15% over the last month or so) - platinum, silver & gold - and agriculture (0% to 3% about a week ago), with the following ... SLVR, PHAU, PHPT, AIGA, Allianz RCM BRIC Stars Fund Cls A Acc and Merrill Lynch Gold & General Fund Acc. The BRIC fund is the worst performing at the moment (-6% - I bought at the wrong time with hindsight), but I am treating that as an opportunity to cost average, as I intend to stick with that for 5+ years anyway, the rest ... they are doing handsomely - watching them weekly and will pull out when I think they have done everything they can - given they are essentially an inflation hedge only, I expect to be with them for at least 2 to 4 years.

If you haven't already, buy everything inside a shares ISA - the subs you can make this year (07-08) depend on what cash ISAs you've already got ... everything changes for 08-09, read up on it at the Working Lunch website.

Oh and ignore everything I have written above and first decide for yourself whether they make sound investments, by reading up on all the influences on their prices, before doing anything further :p
 
FWIW, I am with Selftrade, with a dealing and shares ISA account. Best transaction fees I could find, and free to buy funds within the shares ISA. I've self educated from a variety of sources, but mainly fool.co.uk and their forums. I am also with Halifax Sharebuilder, but they are for a much longer (read 4 years), slow buying strategy - zero buying fees till June 2008, IIRC, then £1.50 per company per purchase ... my prefs there generally gambling, alcohol, specific banks (minimal sub prime exposures), heavy construction, specific retailers (basics rather than luxuries) and some specials that I have spent time on, practising my financial assessment skills - basically everyone I think will do relatively well during a recessionary period and some relatively strong players in their own industries.

Yes, it could all go wrong and I lose the lot - so I am only in for as much as I could tolerate losing and I have made sure to diversify my holdings sufficiently to reduce the risks to a point at which I am happy, without going so far that I may as well just go with a global tracker - which won't give me any rewards beyond that available from top savings account.

Realistically, the returns on the hours I've put in so far are probably half what I get paid as a software developer but I consider these hours an investment for the future - I am enjoying learning more about how businesses operate, what influences markets and getting another opportunity to utilise the economics skills I acquired through my A Level course, way back.
 
The overclockers forum is a good place to ask about upgrading or fixing problems with your PC but not sure it's the best place to ask for investment advice.
 
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