Last week, I told you that I couldn’t even count the number of analysts who mistakenly believe Europe’s financial crisis is over.
Today, I’m going to tell you about those who are wrong about Asia. I can’t even count the number of analysts who still predict doomsday for China.
Or, in fact, for all of Asia — based on some crazy notion that Asian economies can’t possibly thrive when Europe is such a mess and the United States is growing at a mere 2.4 percent.
Meanwhile, for well over a year now I’ve been telling you …
1. That instead, Asian economies — especially China’s — were booming.
2. That Asian stock markets would be some of the best performing markets on the planet.
3. That if you needed income, to look at Asian sovereign bond markets instead of Europe and the United States …
And that other than normal pullbacks, such as we are seeing now in Asian markets, the best long-term growth opportunities will continue to be in Asia, for many years to come.
So who’s been right? Let’s look at the facts:
|China’s stock market is up 30 percent year-to-date.|
A. China’s economy continues to grow at seven percent. Yes, that’s a six-year low, but it’s still 7 percent, enough to double the size of China’s economy roughly every 10 years.
B. The average GDP growth rate of southeast Asian economies for 2014 was a very healthy 4.7 percent. Meanwhile …
C. China’s stock market — Shanghai A share market — was up a whopping 53.05 percent in 2014, and is up 30.37 percent, year-to-date!
At the same time, virtually all Asian stock markets have handily beat the S&P 500.
So then, what’s next for Asia?
As I just mentioned, other than occasional short-term pullbacks, one of which is unfolding now, Asia’s future remains very bright indeed.
Look, as far as I’m concerned, if there’s one thing you need to focus on to understand Asia and to get it right — despite all the pundits out there who keep calling for Asia’s collapse — it’s this:
Asia is home to 4 BILLION PEOPLE. That’s roughly 60 percent of the world’s population.
Or put another way, three out of every five people in the world are Asian.
And they are leapfrogging from either the late 19th century or early 20th to the 21st century, in one fell swoop.
Can 4 billion people coming from feudal, socialist, or outright communist countries be stopped from wanting more for themselves? For their children? For their grandchildren?
I don’t think so. It’s a force that will drive Asia’s growth for many years, even decades, to come.
It’s a force where domestic consumption is now beginning to outpace the region’s reliance on export economic growth, meaning overall growth in Asia will now enter the next phase, even more turbo-charged than the previous one.
It’s a force where the epicenter of the boom, China, has nearly 4 TRILLION DOLLARS in reserve to deploy to help the country — and the region — grow even more.
It’s a force where 57 countries from all over the world are joining the new Asian Infrastructure Investment Bank (AIIB) — because they all recognize that Asia is where it’s at.
All but the United States, where our President foolishly tried to block other countries from participating in the AIIB.
The rise of Asia is so historic, the ground beneath your feet is shaking, yet most don’t even know it.
In terms of Purchasing Power Parity (PPP), China is already the largest economy in the world. In terms of regularly calculated GDP, China’s economy will be the largest in the world in less than 10 years.
And guess what? That estimate doesn’t even take into consideration China’s new Silk Road, which will turbocharge economic growth not only in rural western China …
But throughout all of Asia as well.
In fact, as I pen this column, China’s President Xi Jinping is in Pakistan signing a $46 billion China-Pakistan Economic Corridor (CPEC) — a 1,865 mile network of roads, railways and pipelines between the two countries.
My view: Asia should be at least one-third of your portfolio, if not more.
Best wishes and stay safe,
P.S. Why would anybody in his right mind give away investment guides and tools worth $26.9 million? I’m doing it because I am alarmed by the terrifying new developments I see taking place around the world today. And I am ready, willing and able to give you everything you need to help protect and multiply your wealth in 2015 — absolutely FREE.