Investing in China and Australia!
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Posted:Jun 3, 2012 12:30 am
Last Updated:May 5, 2024 7:27 am 6700 Views
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In China there are two classes of stock. 1) cheap for Chinese, and 2) a more expensive one for foreign citizens. Keeping that in mind, China is still growing 3 times faster than the USA.
The State of the Economy can be found by watching three, stocks based in Macau: Las Vegas Sands, MGM Grand, and Steve Wynn. All are either completely or more than 50% owned by Chinese and have very few if any assets outside of Macau.
So, when there earnings are up that means corruption is up in China and the Chinese economy is doing well.
There are not any Companies in China that are transparent or use any accounting method that has anything to do with economics.
So, investing in China is a gamble, and to reduce the element of risk, do what the Chinese do, only rely on inside information!
You are really better-off taking a look at India. They have a high growth rate, and investing is now open to Americans, etc.; and they generally use a fairly decent accounting system, and the government's finger isn't in every loan.
Australia has the best of Britain and the US. A decent accounting system, a solid dollar, and unlike Europe or USA, borrowing is only 11% of GDP. Long term. commodities are a great play, and I would bet a few dollars on Iraq Dinars. I hope this answers your basic questions. Gold is also good in India regardless of the economy. They still don't trust the Banks, and keep most of it under the pillow in jewelry form.
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