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Home>5 reasons stock-market investors may strike it rich in China

5 reasons stock-market investors may strike it rich in China

5 reasons stock-market investors may strike it rich in China

09/28/2017

By Jeff Reeves, MarketWatch

Beijing is motivated to succeed, and that's a great backstop for investors

The drama in North Korea continues this week, with -- what else! -- a threat from our Tweeter in Chief.

Soon after Donald Trump warned he would "totally destroy (http://blogs.marketwatch.com/capitolreport/2017/09/19/president-donald-trump-speaks-to-the-united-nations-live-blog-and-video/)" North Korea in a divisive speech before the United Nations, he took to social media to warn the nation's leaders would "not be around much longer (http://www.marketwatch.com/story/north-korean-official-says-us-has-declared-war-2017-09-25-13103598)" if they continue to pursue missiles and a nuclear program.

These events adds to the increasingly long list of worries that U.S. investors now face. But despite the risk of geopolitical unrest in Asia, the region still appears to be an appealing place to invest, particularly in North Korea's neighbor to the north -- China.

Some may think it's crazy to invest in the region after recent rhetoric. And others may think it's insane to give up on the S&P 500 as it continues to set new all-time highs.

But on the former point, Hong Kong's Hang Seng Index has shrugged off recent political tensions fairly easily and is actually outperforming the S&P handily in 2017. And on the later, it's important to remember that the U.S. is far from perfect itself: its stock market is looking shaky (http://www.marketwatch.com/story/the-us-stock-market-looks-like-it-did-before-most-of-the-previous-13-bear-markets-2017-09-21http:/www.marketwatch.com/story/the-us-stock-market-looks-like-it-did-before-most-of-the-previous-13-bear-markets-2017-09-21); job and wage growth is slowing (https://www.reuters.com/article/us-usa-economy/u-s-job-growth-slows-in-august-wage-growth-retreats-idUSKCN1BC3Q4); and the market has once again overestimated how much profit corporations are actually taking in (https://www.bloomberg.com/news/articles/2017-09-18/u-s-stocks-are-front-running-third-quarter-earnings-beats).

There is never a clear signal for investors to move their money. But if you look deeper, you may find some compelling reasons to consider investing in China right now, North Korea or no.

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