The Five Things You Need to Know About China
| By Keith Fitz-Gerald Chief Investment Strategist Money Morning/The Money Map Report Legendary investor, Bill "The Bond King" Gross made headlines recently when he said that China will one day have to contend with a bubble of its own making. Gross runs the world's biggest bond fund at Pacific Investment Management Co. LLC (PIMCO). Millions of investors reacted just as you would expect when someone of his prominence makes such a pronouncement - they panicked. While I can see how Gross would arrive at such a conclusion, his comment about China is akin to the economist who tells us that "the U.S. economy will recover." Read Full Article » How to Profit From the "Next" Dubai | By Martin Hutchinson Contributing Editor Money Morning The Dubai World default is a matter of only $60 billion - mere peanuts when compared to other elements of the global financial crisis. It's thus of concern only to those silly enough to invest in real estate there (and the European banks foolish enough to finance it.) For the rest of us, it is a useful reminder that sudden collapses don't really come out of nowhere - they can be foreseen, and smart investors can plan for them. You see, I did foresee this one, for Money Morning readers - 16 months ago, before the global banking crash. Back in July 2008, I wrote that Dubai's economy was "more bubble than boom," that it had "a construction bubble worse than the Florida market and a monetary policy looser than Ben Bernanke's" and that "its return to earth will be painful and probably not long delayed." Read Full Article » Preparing For the Next Asia | [Editor's Note: This interview was adapted from a recent issue of the McKinsey Quarterly, the business Journal of McKinsey & Co. It is reprinted with McKinsey's permission.] Asia has proven comparatively resilient against the current downturn, but hurdles still lie ahead. In order to maintain robust growth rates in the face of weak U.S. demand, the region's dynamic economies must stoke domestic consumption and embrace environmentally sustainable development policies, says Stephen Roach, chairman of Morgan Stanley Asia (NYSE: MS) and author of "The Next Asia: Opportunities and Challenges for a New Globalization." Read Full Article>> |
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