"When you own iShares FTSE/Xinhua China 25 Index (NYSE: FXI), you own the 'best-of-the-best' blue chip stocks traded in the Chinese market," explains Doug Fabian in his The ETF Trader.
"I had been waiting for what I thought would be the inevitable turnaround in Chinese stocks. Much to my dismay, that turnaround hadn't really materialized -- that is, until now.
"For the past couple of months, the value of the iShares FTSE/Xinhua China 25 Index (NYSE: FXI) has undergone a prolonged move to the downside.
"However, the recent strengthening in price has led me to believe that a short-term bottom may be in place for Chinese stocks. I now am recommending that you add the iShares FTSE/Xinhua China 25 Index to your portfolio.
"I like to say FXI is the Dow Industrials of China. This investment seeks results that correspond generally to the price and yield performance, before fees and expenses, of the FTSE/Xinhua China 25 index.
"As FXI has just started to turn off of its lows, I think it has a strong possibility of moving up another 5%-to-10% from here. Make the move into FXI and jump on that fast train to China. We also note that the iShares FTSE/Xinhua China 25 Index just underwent a 3-for-1 share split."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.