Chinese Economy Set to Grow During Global Recession
Maura Lockwood, Cabot Headline News
March 17, 2009
March 17, 2009--Efforts to reverse the global economic downturn will likely make the Chinese economy, with lots of cash and a strong banking system, an even stronger competitor than before the crisis, The New York Times reported today.
China is the world's third largest economy after the United States and Japan. Its leaders are using its nearly $600 billion stimulus package to turn the economic crisis to a competitive advantage, according to The Times. The package is focusing on making its companies more competitive in markets at home and around the world, retraining migrant workers on an immense scale and expanding subsidies for research and development.
While American banks struggle to revive lending, Chinese banks have lent more in the past three months than in the preceding 12 months. The Times quotes a former China division chief at the International Monetary Fund, "The recent tweaks to the stimulus package indicate a sharper focus on the long-term competitiveness of Chinese industry. Higher expenditures on education and research and development, along with amounts already committed to infrastructure investment, will boost the economy's productivity."
The global recession has also already had some positive affects on the Chinese economy by slowing inflation, reversing dependence on exports and reducing the price of real estate, according to The Times.
---
Do you know about the Cabot China & Emerging Markets Report?
Emerging market economies are now the fastest growing in the world, especially China, Brazil, Russia and India. For aggressive investors, Cabot China & Emerging Markets Reportapplies the time-tested Cabot growth investing system to select the best companies in these countries.
You'll discover the value of international diversification and the profit potential of investing in countries whose economies are growing far faster than that of the U.S. All of these stocks are traded on U.S. exchanges as American Depositary Receipts. The stocks are selected for both their fundamental and technical characteristics, but sold mainly for technical reasons.
"The information is very informative, and when investing in other countries
you better have a good advisor to team up with."
~ D.J., Chewelah, Washington, USA
Read more about what Cabot China & Emerging Markets Report readers have to say...
The Report is perfect for growth investors seeking diversification beyond U.S. stocks. There is greater risk involved with emerging markets stocks, but the rewards are greater as well. Investors who seek stocks that offer huge potential in rapidly growing areas would benefit greatly from this advisory.
Cabot China & Emerging Markets Report looks for promising companies benefiting from the rapid growth in the economies of the BRIC countries (Brazil, Russia, India and China). Read about the strict fundamental and technical Criteria for Cabot China & Emerging Markets Report Stocks.
Check out the explosive profits of the fast-growing opportunities that editor Paul Goodwin recommends. See how $5,000 can soar to $10,000, $15,000, $25,000 or more, during the next two to three years.
Don't wait, subscribe to Cabot China & Emerging Markets Report today. Act now for a special introductory rate for new subscribers!
Here is what readers are saying....
“Your explanation of the buy below price, when to hold on until it drops below, etc. are so helpful. I feel like I am hearing you think aloud
as you set your parameters and make your decisions, which helps us make
ours. Thanks much."—S. Kant, Raleigh, North Carolina, U.S.A.
"Your updates are reassuring. Makes me aware you've got a close eye on the portfolio."—R. Davis, Sierra Vista, Arizona, U.S.A.
"Hi Paul, I greatly appreciate yours and your colleagues at Cabot's level-headed approach to the economic turmoil going
on around us. As an investor dealing with my hard earned money, I am
occasionally terrorized by the shouting bear voices painting pictures
of crashing recessions and recommending go to cash and then into
shorts. Cabot's voice of reason and calm has several times helped me
across very difficult stretches of the recent correction, not
unscathed, but at least still in the arena and looking forward to the
calmer waters of the last quarter now that earnings are almost behind
us...Prosperity and good health to you all, and thanks for coming to
work every day."—B. Chevalier, Santa Rosa, California, U.S.A.
"Over the last few years, Cabot's China & Emerging Markets Report has racked up one of the most remarkable records ever recorded by the Hulbert Financial Digest." Peter Brimelow, MarketWatch 10/4/09