Investors used to favor Chinese stocks over US, but now US is seen as better

From The Times: 2024-04-05 19:01:00

In the early 2000s, many investors favored Chinese stocks over US stocks due to China’s perceived economic growth potential. The MSCI China index saw a 580% increase in share prices between 2003 and 2007, while US shares only rose by 60%. The bursting of the tech bubble in the US led many to believe China was the better investment.

However, the tides have turned, and now some investors have 100% of their portfolio in US stocks. China’s economic growth has slowed, leading to a shift in investor confidence. The US stock market is now seen as more stable and lucrative, with a promising future for investors looking for long-term growth.



Read more at The Times: I have no problem investing in China — if there’s money to be made