4. Pay attention to the real estate sector as the Chinese efforts slow the economy are most mostly focused on runaway real estate prices.
5. Watch for companies that are focused on expanding their exposure to the internal consumer in China. Companies like Apple, General Motors and Johnson Air Controls will benefit from an expanding Chinese consumer base.
6. Know the pain you can take. Emerging markets can rise double digits in a matter of days but they can fall just as quickly. The amount of emerging markets in your portfolio should be the amount that you can hang onto even if times get ugly.
(Read more: Why emerging market concerns could boost US stocks)
Everyone knows China is a long-term home run but current positioning and entry points are important. Have patience and choose your battles carefully. Be selective, extremely cautious, and make sure that you invest in future trends — not those that have worked in the past.
—By Michael A. Yoshikami
Michael A. Yoshikami is the CEO and founder of Destination Wealth Management in Walnut Creek, California. He is also chairman of the firm's investment committee.