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Month: November 2017

When the Chinese Market Implodes What Happens to Your Investments

As US investors consider the odds of a stock market correction investors in China are already selling stocks. The Financial Times reports on a fresh China stock selloff. Chinese stocks were back under pressure, as concern about a government crackdown on leverage levels continue to unnerve investors, leaving sentiment fragile. The CSI300, a composite of stocks listed in Shenzhen and Shanghai, fell 1.3 per cent to a near-three-week low after notching its biggest one-day fall in 17 months on Thursday amid concerns over rising corporate bond yields. Since the start of trade then, it is down by over 4 per cent, trimming its year-to-date advance to 22 per cent. The decades-long Chinese economic expansion was based on borrowing to build manufacturing and export capacity and has left the China with a huge amount of private and public debt. The situation in China is reminiscent of that in Japan in the late 1980s when their economy seems all set to take over the world and then hidden debts stifled growth and sent them into a quarter century of deflation. Thus the Chinese economy may be in for a reset or may implode leaving things in shambles for years if not decades. Our concern is when the Chinese market implodes what happens to your investments? Are You Invested in China? A lot of foreign direct investment has gone into China. Likewise...

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Should You Be Investing Offshore?

The US stock market rally may have run its course. But the old saying is that there is always a bull market somewhere. Should you be investing in foreign stocks? Money Watch writes about why foreign stocks are beckoning US investors. Investors in Wall Street’s long-running bull market are obviously a very happy bunch. But many who now question just how long the party will hold up have started looking elsewhere to move at least part of their money. And these days, the international equity markets are beckoning – enticingly so. Indeed, recent trends have fueled rallies in Europe and the emerging markets, analysts point out, although the US equity market continues to have an enormous lead on the rest of the world after the financial crisis. Many global market analysts note that prices are no longer cheap by historical standards, but even so, international stocks look more favorable compared with US stocks. As earnings continue to drive growth the best places to be may well be Europe or in emerging markets. Further down the list is China where there is still great promise but also increasing risk based on excess manufacturing capacity and an awful lot of debt that just keeps increasing. The underlying risk in investing in China is still that the government controls the economy. An example is the recent shadow bank clampdown that briefly drove...

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Shandong Liangshan

¬†¬†Liangshan exclusive automobiles and auto parts industries have sprung up everywhere, in less than five years, the county’s Special Purpose Vehicle manufacturers and parts manufacturers develop to 52, employing more than 5,800 people, the auto industry reached 780 million yuan of total assets, products, developed into 10 series over 100 varieties, special-purpose vehicle production accounts for one-third of total output, becoming the country’s largest trailer production base. In 2004, the county produced a total of 36000 sets all kinds of modified cars to achieve sales income of 2.3 billion yuan, profits and taxes 230 million yuan. In such an economically non-payment of Liangshan Daxian, there are 3 billion in annual sales revenue over production of private enterprises to enter the trailer of “civil modified vehicle manufacturers and products directory”, which are Dongyue, Tung Asia and Arima. Liangshan County trailer industry started in the last century the late 80s and early 90s roadside Electric Welding farm machinery repair shop, when the Liangshan and the surrounding affluent farmers began to use tractors engaged in transport, while some hate boxing sit Dento Dipu Town of farmers in the vicinity of State Highway 220, opened one after another of the dozens of simple Electric Welding repair retail outlet, that is, they engage in the farm machinery repairs, service package in the first batch of rich farmers, and gradually learned to manufacture tractor trailer....

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Should Investors Be Scared as Markets Cool Off?

Did you lose a lot of money in the 2008 stock market and real estate market crashes? If so you probably wish you had listened to that little voice in your head that said it was time to take profits and sit on cash for a while. It was not like there was no warning. Look at Google Finance and you can see how the SPDR S&P 500 ETF Trust peaked in late 2007! For the next twelve months the market was in an ever-steeper decline. SPDR S&P 500 ETF Trust Anyone who listened to that little voice and...

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What Are Some Safe Investment Options Today?

Where should you invest today as the stock market reaches new highs and vehicles like bitcoin sky rocket? Are you into market timing or long term investment? Either way the best advice comes from legendary investor, Warren Buffett. His two rules for investment are these. Rule one: Do not lose money. Rule two: Remember rule number one! If you have made some money in the market in the last few years or if you have sat on the sidelines and want to get in, what are some safe investment options today? The Promise of Trump or Not The shock of Trump winning the presidency wore off very fast and a market that tanked overnight has grown steadily ever since. Pundits have assumed that the promise of Trump to lower taxes, deregulate, bring offshore corporate cash back home and stimulate the economy with massive infrastructure spending have been the drivers of the market. But very little of the Trump promise has come to pass. Bloomberg writes that Trump policies have done nothing for stocks and it has been strong corporate earnings that have sustained the market rally. Decomposing stock returns over the last year, our analysis shows that earnings growth is responsible for most of the appreciation in equities. While analysts assessed the potential impact on earnings from potential corporate tax changes, the recovery in corporate earnings was underway well...

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