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China and India for the westner proletarian investor February 14, 2006

Posted by deminvest in investment, Social investing.

Hmm we consider each other to be the poor, the proletarian, those thare are left back by the uncareful democracy… But we should not forget that we are better off compared to China and India… And this will not last long in a global market where opportunities travel trough the Internet. So it is smart to invest in China or India, or both? And how can the westner poor investor buy stock from those countries?
1) China is cheaper. Companies there have an average p/e ratio (price divided by earnings) of 15. In India it is 20.

2) India is younger and it is a democracy. China’s population is older so they will soon have the same retirement problems we do.

3) China’s communist government may be less stable than indian democracy and more corrupt too.

4) Chineese have a strong asian work and sacrifice oriented culture. Indians culture is more oriented toward contemplation.

So considering all that I’d go for China, gain a good and fast 30% then sell keeping your 30% in stock then give a look to India. But how?

We the people don’t want to make those white collar yuppies downtown rich for pointlesly managing our money and buying stock in a even less educated way than we would. Do we? No, then we need to chose an ETF. The yuppies eat a lot less off an ETS so, get some ETF for China stock from your online broker. Chose one which has low commissions, and if you need an advice, please write a mail to me. I found:

hscei China-Lx in EURO traded in Frankfurs commissions 0.7%
halter usx China-PS in US DOLLARS traded on New York Stock Exchange with commissions 0.6%


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