Wow, last night, China’s Shanghai’s Composite Index dropped by over 9% because of valuation concern. I unfortunately held a small position in FXI and CHL. This drop just reminds you that some foreign markets can be volatile and to be properly diversified. Oil also dropped because of the perception that China’s demand for oil will be decreased because of possibly slowing in the economy due to possible action taken by their government to curb inflation.

I think this is a healthy correction and still see China’s market heading higher over the next few years.

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