iShares MSCI Hong Kong E.T.F. (EWH)

Hasn’t been doing very much in China because he was into the Chinese market 3-4 years ago and didn’t do well. He has issues with the lack of transparency. Understands that there are a lot of financial products out there that are basically subprime. Their growth is slowing, and you just don’t know what is going on. He would rather have American companies that are doing business in China.

Chinese related stocks based in Hong Kong. There is absolutely no problem in buying this as a long-term hold. But he would keep it as a relatively small amount.

It’s the formula that works – positive earnings revisions and growth, plus reasonable valuation at 15x. Very financial services and real estate oriented. Will probably be in for a couple of months.