I know China has taken its lumps in the last year. But despite all the bad news you’re hearing about China, I maintain that China is not in anywhere near as bad shape as the press and other pundits are leading you to believe. I’m back on-the-ground in Asia now and lots of exciting things are happening over here.
I believe some of the best profit opportunities this year will be found in China. Why? Many reasons. Chief among them: The financial strength now inherent in China’s economy. Take a look at these stats …
* $2 TRILLION in cash in its kitty
* At least $585 billion being spent on infrastructure
* Retail sales still robust, growing at an annual rate of 21%
* Disposable income on the upswing, rising 7% in 2008
* Rural incomes also exploding higher, up 7% for 2008
* Fixed-asset investment growth up 26.8%
* Property investment up 22.7%
Plus, Beijing is slashing interest rates, bank reserve requirements, taxes, tariffs and even implementing relaxed standards for purchases of second homes and investment properties.
Meanwhile, the Chinese stock market is in deeply oversold conditions — and many great Chinese stocks are now trading at very cheap valuations, as low as 2 times earnings!
I expect China’s stock market to head substantially higher this year retracing at least 50% of its decline last year.
Bottom line: Of the select investments I’d make in these wild and crazy times, China is one of them.
To get an in-depth look at my other 2009 forecasts and my core recommendations that will help make you a bundle of money this year, see my Real Wealth Report.
Related Posts
- Here’s more on China, just in … (07/24/08)
- China Leads The Way … (11/10/08)
- China: Time to get in – NOW! (07/01/08)
- China to corner the world’s gold market (10/17/08)
- Bingo! China’s Oil Imports Surging! (06/11/08)
