Salient to Investors: Only 3 emerging-market stock pickers avoided losing money in half1 by making prescient currency bets and buying companies insulated from economic swings and government interference. They recommend Philippine retailers, Chinese Internet companies and Indian drugmakers. Lewis Kaufman Thornburg Developing World Fund said there are many going wrong. Kaufman is overweight
READ MORE... →Salient to Investors: William Pesek writes: The world believes that China’s leaders are masterful stewards of their economy, steering brilliantly around the 2008 financial crisis, with near-double-digit growth. But the Chinese economy is a giant and powerful creature born of unorthodox experiments, and its makers are increasingly losing control. Over the past decade, China’s
READ MORE... →Salient to Investors: Ethan Anderson at Rehmann Financial said investors have been shaken by the concept of rising interest rates, a reduction in Fed stimulus, and uncertainty about the Chinese central banking system. Goldman Sachs cut its 2013 forecast for China’s economy and said the cash squeeze is hurting growth. Vasu Menon
READ MORE... →Salient to Investors: Shane Oliver at AMP Capital Investors said he was not worried until this week because things are much different in China than expected and potentially pose risks for global growth. Oliver said we relied on the Fed and China so much over the last few years that
READ MORE... →Salient to Investors: Niall Ferguson at Harvard said: The West is in decline cause by political and economic stagnation and the US and Europe institutions that are degenerating include democracy, regulation, the rule of law and justice, and civil society. Non-Western countries are improving their economic and political institutions and
READ MORE... →Salient to Investors: Currency strategists from Barclays to Deutsche Bank are advising to sell the yuan as China growth slows and inflows slow as China demands lenders curb foreign-currency loans on concern companies may have exaggerated shipments to facilitate carry trades. Igor Arsenin et al at Barclays said policy makers will
READ MORE... →Salient to Investors: New home prices in Beijing, Shanghai and Guangzhou posted the biggest gains in May since at least January 2011, and 69 of 70 cities tracked showed increases, the most since August 2011. Zhang Zhiwei at Nomura said China’s dilemma is that it is difficult to tighten the property
READ MORE... →Salient to Investors: The cost of 3-month puts on the iShares FTSE China 25 Index Fund have risen to the highest since September 2012. Morgan Stanley has joined UBS and Barclays in lowering predictions for China’s economic growth. Derrick Irwin at Wells Fargo Advantage Emerging Markets Equity Fund said investors are nervous about
READ MORE... →Salient to Investors: Fareed Zakaria said: China does infrastructure better than anyone in the world – trains, roads, airports, subways built at amazing speed, on a grand scale and with great foresight. The HK Nicaragua Canal Development Investment Company, Ltd, will help finance a Nicaraguan canal at a total cost
READ MORE... →Salient to Investors: Jim Rogers said: When investing, don’t follow the crowd Most government numbers are made up. China has problems with housing and inflation as the US did in the 19th century when it was growing rapidly. Every country that grows rapidly has problems. The US had recessions and
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