Small Cap Chinese Stocks Oversold/ U.S. Aging Population Plays

Oversold China

For those of you who own these small cap Chinese stocks you have being seeing a lot of red lately.  This can be attributed to recent accounting errors from Chinese public companies, inflation concerns, and a general bearish outlook on China.  Why do I believe that these stocks are being discounted too much?  I honestly believe that investors think that a dollar in China is worth less than a dollar in the U.S.

If you have a tighter investment horizon then I think you can get international exposure through large cap U.S. names, like JNJ and MCD.  However, if you are more risk tolerant or are trying to beat the market I would take a look at some Chinese small cap companies.

Take a look at VIMC, XIN, and CHOP.


Purple Hair Play

The population is aging considerably.  The U.S. census showed an average age of 38 in 2010 compared to 35 in 2000.  That is going to continue to grow.

If  you plan on investing until 2030, look at CVS, JNJ, ABT, and AHS.  Those are my favorites for a long-term play.  Honestly you can't go wrong with JNJ or CVS.  These companies will always have solid top line and bottom line numbers. The older population buys more prescriptions and general health care products and services.

This might be the safest investment I have ever seen.

My Investopedia Portfolio 3/29/2011 FVITF

My current holdings:

• Exelon (EXC) 500 shares at a 3.39% loss
• General Electric (GE) 1000 shares at a 17.23% gain
• Alnylam Pharmaceuticals (ALNY) 500 shares at a 41.56% loss
• People's United Financial (PBCT) 250 shares at a 13.04% loss
• Nvidia (NVDA) 1400 shares at a 71.75% gain
• Caterpillar (CAT) 200 shares at a 72.74% gain
• Union Pacific Corp. (UNP) 200 shares at a 33.89% gain
• Citigroup (C) 1000 shares at a 11.95% gain

I am selling shares in Caterpillar and Nvidia.  I still like CAT long-term, but I want to ring the register on the gain.  I wish I would have sold Nvidia when it was in the $20s, but I feel like its time to sell some of the shares.

I am going to start buying Fortuna Silver Mines (FVITF).  Go to:  www.fortunasilver.com  and check out their 2010 financial performance.  It is incredible.  I've never seen anything like it.  You will be astonished.  FVITF closed March 29th at $5.22 a share.  This investment is riskier and could be considered a gamble, especially if you consider silver prices unreasonably high.