China - The Tightrope Walk
No other economy attracts as much awe and skepticism as China. What China has achieved during the last 20 years is almost unparalleled for a country of its size. Today, the rise of protectionism, concerns about the currency, and overcapacity in heavy industries have created challenges for China. Despite these headwinds, there are enough positive trends in the China story to keep us optimistic.
Investment Considerations — There can be no guarantee that any investment strategy will be successful. All investing involves risk, including the potential of loss of principal.
Emerging Markets Risk — The risks of foreign investments are typically greater in less developed countries, which are sometimes referred to as emerging markets. For example, political, legal and economic structures in these country may be changing rapidly, which can cause instability and greater risk of loss. These countries are also more likely to experience higher levels of inflation, deflation or currency devaluation, which could hurt their economies and securities markets. For these and other reasons, investments in emerging markets are often considered speculative. Similarly, investors are also subject to foreign securities risks including, but not limited to, the fact that foreign investments may be subject to different and in some circumstances less stringent regulatory and disclosure standards than U.S. investments.