You have often said international stocks are an important part of a balanced portfolio. What about a country like China, that seems to be acting against what is good for
This is a challenging topic. China continues to be a very important economy. Most well-managed portfolios will have some exposure to China. Even a portfolio composed only of companies based in the United States will have some operations there. This includes auto manufactures, personal goods, and luxury brands. US filmmakers are very interested in building their following in the Chinese market.
In a similar way, Chinese companies want to participate in the US market.
For policymakers, this presents some problems. China’s strong governmental control gives them influence over those companies that is potentially dangerous for national security AND intellectual property.
For the normal investor, like you or I, exposure to China can be managed, but not entirely eliminated. We hope that the slow trend toward greater liberalization can bear positive fruit.