Listen people,
Guys like Dave are scaremongers who have hidden agendas. They neverreveal their true intentions or positions because they are typically 2bit players trying to daytrade their way to wealth. He is all over theinternet. Check out his negativity on the Google FXI website.
If you are in FXI for the medium to long term, you cannot be in abetter investment. The reason for the selloff today is because the newscoming out of China is TOO GOOD! That's right, the Chinese economy grewat 10.7% in the 4th qtr, higher than expectation. The concern is thatwith all this growth, inflation may begin to set in, resulting in aninterest rate rise, the last of which was in August.
Here is what the Chinese government is going to do - they are going toraise interest rates a bit in the first quarter in an attempt to cooloff rampant speculation in the mainland markets (which are not the sameas the Hong Kong H shares where the majority of FXI is), and then beginthe easing process somewhere later in the year to grease the skids for2008. There is going to be SHORT TERM PAIN for the next 1 - 4 months,no doubt about it. If you cannot handle the daily swings, then youshould find a better investment suitable to your constitution. But forthose that stay strong, there is not another place on this Earth thathas better long term potential, other than possibly India.
Mark my words. If FXI isn't substantially higher by year end, I willpersonally come on this thread and admit that I was wrong about China.