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Here’s why U.S. stocks are likely to beat China’s markets - Mark Hulbert

U.S. workforce population is growing, while China’s is in decline

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See: Mark Hulbert

Comments

  • That is one of the reason they are ending their one-child policy. If the trend continues, they are following Japan's rapidly aging population and not enough young workers to support them. Question is can the Chinese families afford to raise a second child?
  • Anyone paying a fund manager to pay attention to Australia? Australia has been one of the best places to avoid risk and appreciate wealth.

    "Australia has one of the most robust economies in the world. Since the late 1980s, the government has helped transform its economy an export-driven, high tech juggernaut. The result has been higher gross domestic product (GDP) growth rates that have averaged 3.6% over compared to the OEDC average of just 2.5%, between 1992 and 2007.

    The country has also proven resilient to the global economic downturn of 2008 and beyond. In fact, the country’s economy and employment levels actually grew during the worst of the crisis."

    A-Guide-To-Investing-In-Australia
  • edited November 2015
    @Sven. I think the 1-child policy enforced by the Chinese government was instrumental in making it difficult for parents to raise 2 children. The second child didn't get diddly from the government. Now that they have 2-child policy, I'm assuming the government will assist in raising 2 children. Else, there wouldn't be any point to the change in policy, right?
  • edited November 2015
    Howdy @bee

    I couldn't find a reference date for the linked article.

    But, to note:

    Since about March, 2013 to date the following applies.....(date range available to me using charting)

    ---March 2013, about USD$1.04 was required to purchase $1 Aussie value in an etf such as EWA.

    ---Today only requires about USD$.72 to purchase the same $1 Aussie value.

    This represents about a minus 31% of currency value during this time frame. So, if one purchased EWA or similar 2 1/2 years ago, that money is in the hole about 31% just from currency values.

    The Aussie dollar has continued to fall in value against the $US during this period and has bounced along lows in the recent months.

    Now, if one was interested in Australia today; then the pricing might be more attractive today relative to $US purchasing power; but one has to keep in mind what has become of commodity pricing and how much demand will come from China for these products from the Aussies.

    EWA is about -12.3% YTD and - 20% for 1 year.

    Potential does exist today with Australia, but my monies will likely travel to other places.
    My 2 cents worth.

    Take care,
    Catch


  • catch22 said:

    Howdy @bee

    I couldn't find a reference date for the linked article.

    EWA is about -12.3% YTD and - 20% for 1 year.

    Potential does exist today with Australia, but my monies will likely travel to other places.
    My 2 cents worth.

    Take care,
    Catch

    I compared two other commodity driven economies (Canada and Brazil) and compared to EWA one can appreciate the the impact lower commodity prices have on these two regions and economies. Some of Brazil's economic woes have been hindered by governance.

    Countries with younger populations have the challenge to provide opportunity for this population. Much of the unrest in the world today can be traced to disenfranchised youth.

    A region, state, or country that can harness there natural resources to promote employment and education will boost their economy and usually be a great place to do business and invest.
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