The Dow has been on a mini-roll. Therefore, most investors are thrilled to see battered stock portfolios recover even a smidgen of their massive losses. The problem is that these investors aren’t paying attention to what’s happening elsewhere around the globe. And they may be missing out on the opportunity of the decade!
That’s because the morsels of good economic news coming out of the U.S. are completely overshadowing what’s happening in Asia.
China: A Bright Spot in the Region And the Global Economy
Just last week, a new report from the World Bank painted a very pretty picture about the economies of China, the world’s third-biggest economy, and its Asian neighbors …
The World Bank is forecasting that the Chinese economy will grow by 6.5 percent this year and expects it to really take off in 2010.
Thanks to China’s $586 billion stimulus spending plan, the World Bank is forecasting that the Chinese economy will grow by 6.5 percent this year. Could you imagine the cartwheels Bernanke and Obama would do if the U.S. economy was growing by that amount?
Things are so positive in China that the World Bank called China “a bright spot in the region and the global economy” and expects the Chinese economy to really start rocking and rolling in 2010.
Vikram Nehru, the World Bank’s chief economist for its East Asia region, thinks the worst is behind China and that China has or is very close to bottoming.
“The evidence on what’s happening in China seems so pervasive and seems to cross so many indicators that I think there is now a growing degree of confidence that the stimulus package in China is having impact. Purchases of inputs have soared. Even consumer confidence is up and of course everybody knows bank lending has accelerated quite significantly.”
Source: moneyandmarkets.com newsletter