Forget Chinahttp://www.fool.com/investing/international/2007/12/10/forget-china.aspx Nathan Parmelee
December 10, 2007
Remember this past February, when the Shanghai Composite tumbled 8% in a day? Investors got spooked, they sold stocks across the board, and panic set in.
So what's happened since?
The Shanghai market is up almost another 100%.
The great disconnect
While China's economic growth is very real, so was the growth of the Internet nearly a decade ago -- and that turned out very, very badly.
China will likely have a stronger and more impressive economy a decade from now, but there are signs of inflation, as well as signs that the country may have to moderate its growth to conserve one of the most basic resources we all take for granted: water. In other words, the balance of risk and reward is now better in other developing economies -- ones that haven't seen their markets triple in a few short years.
Three to consider