When you invest your money into stocks or bonds, financial advisors often encourage diversifying. And with the Chinese Central Bank becoming more lenient with their policies, investors in the U.S. can diversify their portfolios even greater by investing in the Chinese Stock Market. Kelley School of Business Associate Professor of Finance Cathy Bonser-Neal explains these historic changes and gives insight into what the future investments of U.S. investors may look like.
Show Notes: 0:06 Shane Simmons and Phil Powell welcome listeners to The ROI Podcast. 0:40 A glance at the world economy. 0:45 The U.S. economy is a quarter of global activity. 0:56 China's economy, in terms of purchasing power parody, surpassed the U.S. 1:18 The U.S. and European stock markets and how they compare to the Chinese Stock Market. 1:48 Introduction to Cathy Bonser-Neal 2:33 The definition of volatility. 2:41 Why China wanted to stabilize its currency. 2:56 Two ways China has stabilized its economy. 3:34 Why the Chinese Central Bank wants to keep its currency stable. 5:30 There's pressure to depreciate China's currency. 6:03 What a more open Chinese market means for foreign investors. 8:15 Where you can listen to The ROI Podcast.