Upon a quick portfolio edit, I realized I have been unknowingly allocating a much higher portion of my capital into US equities and out of international and emerging market funds. This is a mistake, and I am starting to correct it. I have started to shift especially into China and my recommendation is that others follow suit – the reason – stronger growth.
Previously I discussed the opportunity in China (prior article), and this remains a huge opportunity for those who plan on being in the market for the next twenty years.
China unexpectedly posted its first trade gap in three years in February as a construction boom pushed imports much higher than expected. That upbeat import reading reinforced the growing view that economic activity in China picked up in the first two months of the year. – Fortune
If we examine iShares China Large-Cap (NYSEARCA:FXI) a popular fund with over 3B in assets and an expense ratio of 0.74%, the top holdings are compelling.