Salient to Investors: Fareed Zakaria said: Africa has become the great hope of the business world. The World Bank says Africa could be on the verge of a take-off the like of China’s 30 years ago. Populations are stagnating or declining in Europe, Japan and China, while Africa’s population of 1
READ MORE... →Salient to Investors: Stephen Bell and Dr. Hui Feng at the University of Queensland write: The current Chinese credit crunch differs markedly from those in the late 1980s and early 1990s, and shows China no longer relies solely on political and administrative controls, and is allowing market forces take a greater role. The
READ MORE... →Salient to Investors: Nisid Hajari writes: No Chinese firms rank among the 10 most valuable companies in the world by market value down from 5, all state-owned, in 2008. All top 10 are American – evidence of the US economy’s resilience and skill at reinvention. However, one good stock rally
READ MORE... →Salient to Investors: Alexander Friedman at UBS says: What Fed has done is not unexpected and the market reacted because it was ahead of itself. All the Fed was saying was that the US is doing OK, that the data is trending as it should, and that it has confidence
READ MORE... →Salient to Investors: A. Gary Shilling at A. Gary Shilling & Co. writes: Short stocks and commodities, go long the dollar and Treasuries – if stocks continue to decline, the safety of Treasuries and investment-grade bonds will outweigh concerns about the end of QE. World economies are growing slowly at
READ MORE... →Salient to Investors: Borrowing costs for Chinese banks have surged the most in at least 6 years. Three of the largest rating agencies warn that banks may run out of cash to pay investors in their wealth management products and to extend new loans, increasing the risk their customers will
READ MORE... →Salient to Investors: Henry Paulson at the Paulson Institute said: Phasing out QE will cause market volatility and pain because there is never a neat, elegant solution that is totally painless or without a cost to a big, ugly problem – some market participants are addicted to these abnormally low interest rates. The US
READ MORE... →Salient to Investors: Boston Consulting says Mexico is beginning to beat China as a manufacturing base despite its higher crime rate: a plus for the US because Mexican factories use 4 times as many American-made components as Chinese factories do. Mexico’s 4 key advantages: Manufacturing wages, adjusted for Mexico’s superior worker
READ MORE... →Salient to Investors: William Pesek writes: No country is more vulnerable to the dreaded slowdown in China than resource-rich Australia, as the mining boom that fueled nearly all of Australia’s recent growth is nearing a cliff of economic risk. Exporting natural resources led to the neglect and atrophying of other critical
READ MORE... →Salient to Investors: Jim Rogers writes: China has a major water problem and the only way the China story runs into big problems is if they run out of water. They will solve it so buy companies that are working to fix that problem. The Chinese stock market is getting
READ MORE... →