You probably didn't notice, but while U.S. stocks were pummeled last spring, the markets in China soared. So-called B shares of the 100 or so companies listed in Shanghai and Shenzhen that are open to foreign investment nearly tripled in a four-month blitz. The China rally serves as a reminder that it's wise to own stocks with low correlation to the U.S. But if China is your choice, load up on Dramamine, because this boat delivers one rough ride. Since May, the soaring B shares have tumbled 34%.
The extreme volatility doesn't mean Chinese stocks aren't worth the risk. After all,...
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