INVESTMENT: THINK CHINA, NOT JAPAN
Before the end of this year, China will become the world's second-biggest economy, replacing Japan about 10 years ahead of schedule.
Professor Shujie Yao
Before the end of this year, China will become the world's second-biggest economy, replacing Japan about 10 years ahead of schedule.
Professor Shujie Yao
The Telegraph, May 21, 2009
This should ring alarm bells for traditionalist investors.
Traditional thinking is that China is an emerging market economy – usually a small, high-risk part of investor portfolios; Japan the stable, mature economy worthy of significantly greater exposure.
But this turnaround in the global gross domestic product (GDP) league tables should also, arguably, trigger a turnaround for many investors. First, China. There is no doubt China has been hit by the global recession.
Exports fell for the sixth month in succession in April, the Shanghai Stock Exchange suffered worse drops than most other leading world stock markets in 2008, when it fell by 65pc although it has recovered since, and GDP growth has slowed from double figures in 2007 to a likely 8pc this year.
This should ring alarm bells for traditionalist investors.
Traditional thinking is that China is an emerging market economy – usually a small, high-risk part of investor portfolios; Japan the stable, mature economy worthy of significantly greater exposure.
But this turnaround in the global gross domestic product (GDP) league tables should also, arguably, trigger a turnaround for many investors. First, China. There is no doubt China has been hit by the global recession.
Exports fell for the sixth month in succession in April, the Shanghai Stock Exchange suffered worse drops than most other leading world stock markets in 2008, when it fell by 65pc although it has recovered since, and GDP growth has slowed from double figures in 2007 to a likely 8pc this year.
(…) [artículo aquí]
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