I agree with you here Madharry. To me, it appears to be the case that the China issue is mostly a media construction. (I could well be wrong though.) The way I see it, all the risks were there before too – everyone knew that China was China – and now that everyone has "re-realized" it, the prices of their securities are (slightly) cheaper, and thus a better buy. The market has now become less risky, as the risks have already materialized. (Just my view.)
I think this is probably "the time to invest and get rich", as Buffett put it in 1974.
This is one of the few cases where I prefer to just buy an index than pick stocks though. The political risk does seem a little high when picking individual issues, especially if one is choosing from a basket of much-talked about companies like BABA.
One stock I may invest directly in, however, which I haven't seen mentioned here, is Sohu.com (SOHU). This is a special situations case which may or may not be of interest to some of this thread. It's in part a gaming co, which is off-putting to me. They are in the process of selling their search engine business to Tencent, which would be the main value-realizing event, and would make the co. less scattered. The guy running the outfit, Charles Zhang, strikes me as an intelligent, honest-seeming guy too. But I'm not quite sure how to value it, so I'm a little hesitant to bet on it.
I got the idea from a Swedish investor who did a good write-up on it here: jakten.blogspot.com (I'm sure that one can google translate it reasonably well!)
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