China: Long Term Buyer Of Chinese Stocks

I am a long term buyer of chinese stocks. We buy a lot of Chinese names through Hong Kong as well. I think that is where you want to be as a long term investor. There is a lot of wealth being created in China.

Are there problems? Sure. The problem is that their currency is pegged to the U.S. Dollar and as a result to maintain that peg the Central Bank of China does a lot of foolish things. But I think the Federal Reserve is doing even more foolish things and ultimately the fundamentals in China are much better than they are in the United States.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Shanghai Composite: Nothing Goes Up In A Straight Line

Look at how much the market (Shanghai Composite) rose in such a short period of time. Nothing goes up in a straight line. Obviously you are going to get volatility and you are going to get market corrections. But long term I remain very constructive on both the economy and the stock market in China.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Foreign Stock Markets: My Favorites

My point is, in order to save the stock market, they sacrifice the U.S. Dollar. That is the real concern investors need to have. Not just the U.S. stock market going down but the dollar and the way to protect yourself from that is to invest in countries against which the U.S. Dollar will be falling. So, we are buying stocks in markets like New Zealand, Singapore, Hong Kong, certain emerging markets, Australia and Canada.

There are parts of Europe that I like, Switzerland, parts of Scandinavia.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.