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I believe any savvy investor watching China knows that history here is just repeating itself with another bubble. But when will it burst?

I've held FXI for almost 2 years now and am rolling in profit. I've held off selling at each correction, since the overall market seemed to have steam. China basically ignored the US summer's decline.

I want to be smart, but I don't want to leave tons of money on the table. Several stones would be enough. I'm guessing that China will continue its ascent at least until the Olympics. But I also question myself on this theory. If I got out now, I'm looking at 200% profit in two years.

Pigs get fat, hogs get slaughtered. But if there's more at the plate, the pig should eat it. Any thoughts?
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I'm in about the same situation as you, having bought fxi almost 2 years ago. I purchased before officially joining TMF so it's one of my personal buys that I'm most proud of.

I actually wrote some covered calls this month and with the fast run up, I will definitely get called out next week of most of my position. while I won't have maximized my profit, I will turn a nice tidy one.

I own CTRP, and while it's done well, the two don't move hand in hand all the time.

I believe the bubble will burst (or at least deflate) soon and if it does, I'll increase my stake. If it doesn't, I'll count my earnings and think of what could have been.
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I purchased shares of FXI in January of 2006. It has also tripled.

I am an "asset allocation" investor - I do not try to beat anything; I am attempting to maximize my chances of average annualized returns.

FXI's trebling turned it into more than 5% of the portfolio. Just this week, I sold much of it during rebalancing. Some money still remains in FXI, because it and other emerging markets are part of the portfolio design.

The real question for you is: what are your goals? are you merely trying to have a stable growing portfolio or are you hoping to make a killing?

If it's the former, trim it back until it fits in with your original plans.

If it's the latter, good luck. You've already admitted that you know it's a bubble and this is a very expensive basket of stocks. Historically things that get beyond their fundamentals eventually have a day of reckoning. Almost no one is skilled at guessing that day until it arrives. Even then, many are in denial until long afterwards.

Compromise: Recoup your initial investment and put it somewhere safe. Then you're still "in" but the losses will hurt less when they arrive.
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