Guru Strategy: Enjoy China's stir-fry economy, but don't get burned

Investors in the Chinese market are thrilled with their returns. The Shanghai Composite Index is up more than 80 percent year-to-date and is at a one-year high. Hong Kong's Hang Seng index (HSIX) is up more than 40 percent, and the MSCI Emerging Markets index (EEM), which trades at a price-to-earnings ratio of 17.3, is now 25 percent higher than its average P/E over the last five years.

All too good to be true? Many investors believe that they are now riding the economic growth curve that was long predicted for China. But Carl Delfeld (pictured) -- head of global advisory firm Chartwell Partners, which runs ChartwellETF.com and SeekingETFalpha.com -- says investors may be in for a rude surprise.