A friend of mine invested in China Mobile, PetroChina, and I think he said the Shanghai index. They are all stocks that "should" do well, but unfortunately he bought before the recent downturn. So, the way I see it is, his thesis is correct, but his timing is wrong. Of all of them He recommended buying China mobile now.
These stocks are;
China Mobile Ltd. (ADR) (NYSE:CHL) $44.90
PetroChina Company Limited (ADR) (NYSE:PTR) $98.19
Dow Jones Shanghai Index (INDEXDJX:DJSH) $263.83
Looking at these and just applying my +5% rule [to avoid getting stuck with wrong timing] these are my thoughts;
The most recent low of China Mobile was $44.75 so, with no lower low, we shouldn't buy in till $46.99.
The most recent low of PetroChina was feb 3rd at $94.75 so, we shouldn't buy in till $99.48. But on march 4th it hit $104.99 and has trended down since till today's low of $97.40. So, if there is no lower low, and we see the trend change to up, $99.48 would still be a good purchase target price.
The most recent low of the Shanghai index was $260.93, so, again, with no lower low, our target buy price should be $273.97.
This gives me some time to gather more money.
So, what's your 5% rule, and what do you thing about investing in DJSH tomorrow (Monday, 8/30/15)?
ReplyDeleteLike any rule, my 5% rule is not hard and fast, but a guideline. It is, don`t buy a stock until it has had a recent 5% increase; until it has shown you it is headed in the right direction.
DeleteI don`t think the troubles iin China are over, so I would be very careful. However, if DJSH has shown an increase, it may be worth dipping your toe in.
Just remember with all investing, capital preservation is paramount.