|Key to Better Future: Diversify Investments|
|by Tom McGregor||Sun, Nov 25, 2012, 10:20 PM|
BEIJING: Learning new investment strategies can be complicated. Those investing into the stock market must stay updated by reading up-to-the-minute business reports and review detailed information of publicly listed companies.
They have to analyze and forecast market trends, but even if they become experts, sometimes the stocks they buy still go down.
Nevertheless, they are still taking the right approach to diversify their investments. Many Americans have amassed enormous personal wealth by staying consistent with buying stocks, bonds and mutual funds.
Yet many Chinese fail to follow a similar pattern with their investments. They pour almost all their savings into property deals.
Yes, the real estate market in China has been sizzling over the past few decades, but government policies are trying to cool down the industry. Higher property prices have caused burdens.
Chinese society places too much emphasis on housing. Many young couples must purchase a home before getting married. To buy a house they must pool their savings along with money from extended family members to pay the down payment of a mortgage loan.
These conditions make the country ripe a property bubble. A property downturn could prove disastrous.
To read the entire article from SINA English News, link here:
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