Around the World in 80 Days: China

Good morning Blog's People!

With today's post we would like to begin to “to see” what the World of managed offers us to invest in the various markets (geographical). My analysis will happen through the use of the indicators (That you should know to memory) and with the aid of the data that they will be withdrawn by the site www.morningstar.it, but I think they are the same in www.funds.morningstar.com.

I premise that I will never allow me of “to recommend” the purchase of a fund rather than another, but I will look for only to show the offer and to notice you how you can be limited the possibilities to effect the wrong investment.

The first run country is China. The motives for the choice are manifold, first of all because that is a market in great expansion and, it could be, a great choice for the long period.

The selected funds (output to 3 with at least rating 3 stars, category stock China) are:

The comparison shows that the “winner is” the fund of Fidelity (what it also has 4 stars morningstar). The fund shows, however, that, also having a smaller volatility (Standard deviation), he brings behind an highest Beta and an highest Alpha than the others So we can say that the manager is more efficient.

Before greeting you I pass the word to the “Guru” for an analysis on the Chinese market in the brief and in the long period.

With affection yours adorable promoter of district.

Dott. Moretti

To the question “to invest on China” I answer with a question: why China? The unanimous answer is because it is the economy of the future, but I observe only my unquestionable law: a graph is a graph. I don't know how much Elliott can be applied to the index of a country where everything is “checked”, whatever I try it. My worse scenery it individualizes the Shanghai Composite in his last rising leg , I don't know if the rise will end tomorrow or in 8 months and therefore on the brief term the “optimist wave” would advise to invest in this country. However the graph “says” another thing too: the oscillations bears are increased of ampleness in the last correction, it's evident therefore that volatility is increased and the risk for investment becomes larger, but, above all, what is the sense to invest on an asset that has already earned 400% without a break??? Perhaps this last is the best analysis that can be done.

Ing.Bertolino