Money

Why You Lost So Much Money Investing in China

Last week’s news that China’s economy is set to overtake the U.S. economy in size by the end of this year was greeted with a collective yawn by the U.S. financial press.

It’s easy to see why. China bulls have had a rough five years.

The Shanghai Composite Index closed yesterday at 2028. That’s almost a 67% drop from its Oct. 16 peak of 6,124 in 2007. It’s also 21.7% below the 2592 level it closed at exactly five years ago.

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U.S. investors don’t care about the size of China’s economy because, well… it hasn’t made them any money.

“The China Miracle” now has underperformed the U.S. S&P 500 by more than 120% over the course of the past five years.

Read more about why predicting the future success of the Chinese economy turned sour at Eagle Daily Investor.

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