I’m not even finished reading this WP article – it being the umpteenth I’ve read in the past two months – and I already want to invest a little over in China somewhere.
The infrastructure of China is growing rapidly. Without haste at all. I know the billion-person country just got on the ball with industrializing its historically rural landscape, but investors are about to – or should – get on the ball putting money into a fiercely growing nation.
The Post article said that a real estate bubble may occur soon in China. The Chinese government is regulating how people have to pay for their homes because of “excessively rising house prices.” They are also enforcing low-cost housing.
The next few sentences bear the exact idea I’m conveying in this blog entry:
The Chinese government …said it will monitor capital flows to “stop overseas speculative funds from jeopardizing China’s property market.” It also said that any Chinese family buying a second home must make a down payment of at least 40 percent.
I’m speculating! On the possibly – more like PROBABLY – prosperous China of the future!
They are building hundreds of thousands of miles of highway that will stretch out into places in China that have never even been driven into! That begs the question, WHAT AUTO MAKERS ARE EXPANDING INTO CHINA TO PROFIT THE LOOMING CAR-BUYING BONANZA?
The real estate market is already boiling hot as is land purchases. China is almost the world’s largest exporter. Their exports of machinery, tech and furniture contributed to an almost 18% growth in December beating estimates of a 5% growth although exports fell 16% in comparison to December 2008. Imports grew 55% in December (economists predicted around a 30% rise).
There’s another article talking about a rich guy who warns against China, or as he calls it, “China Inc.” The New York Times reports that this rich guy, James Chanos, thinks China has “hyperstimulated” its economy, and knows it. The speculation, especially in the real estate market, is a risky boiling bubble waiting to pop – “Dubai times 1,000,” Chanos says.
Me? I’m very young and much more of an optimist. I have a stick of land in Africa and once had stock in Apple. I think China can do good for smart investors. My everlasting belief when it comes to investing: Invest in something that’ll always bring in money no matter what s*** hits the fan. In China…maybe the rice industry – 1 Everyone on earth eats rice – it’s especially a staple in the Chinese diet 2 China is an exporter of the grain and Chinese rice companies are expanding their business into Africa, Central America and South America, which are also other places you should invest in..*ahem*… growth in Brazil (next blog topic?) 3 Even though China isn’t Asia’s biggest rice exporter, China does business with Thailand and Indonesia, two of the world’s biggest rice exporters. You can expect businesses to merge and work together based off that. If two companies merge, your shares will carry over somewhere – and the automobile industry…better yet, the cement company that deals directly with downtown metropolitan reconstruction of roads and highways.
Real estate is bubbly. The financial sector is bubbly. Those aren’t things you can depend on.
Photo from www.shekouonline.com
Another investment idea to live by: live by the gold standard. Gold is always going to be worth something. According to the current market, gold is worth about $1,160 an ounce. It reached a record on December 3rd – $1,228.
Hey, I’m just saying.
I agree with gold and investing it the metal. Investing logic should be derived straight from the gold standard. A smart investor will always put their money and time into something that always has high value to everyone.