Today’s my first day off since gosh knows when. So I’ll be very brief.
I don’t know about you, but during quiet times like these, I often think about my recent travels — like the last time I was in China.
While the others in my group saw the sights, I dedicated my time to talking to people.
I talked to merchants and traders, police and soldiers, business people and entrepreneurs, rich and poor.
I feel I was well prepared: My Ph.D. is in cultural anthropology. And I had learned Cantonese when I was in my early 20s. Then, I kind of converted over to Mandarin when I was in my early 50s.
But don’t misunderstand. My knowledge of the language is actually shallow. My trick is to learn to really use a core vocabulary, and not much more.
In any case, it helped me dig into the ethos of China today, in person. And it’s a dynamic that I feel most people, even in China, still don’t quite understand.
188 Hong Kongs!
295 Singapores!
Look at it this way …
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Hong Kong was a city-state that defied all odds — virtually no land area or natural resources … mostly refugees from Kwantung Province … few with more than the shirts on their backs (plus an exuberant entrepreneurial drive!).
And look at what Hong Kong accomplished, even under the yoke of Britain’s colonial rule!
Look how it was able to trump exporting nations many times its size — in price, in quantity, and even the quality of the products it churned out.
If you’re not convinced, consider Singapore. Smaller than Hong Kong and quieter. Further removed from the rush of refugees. But also a favorite destination for mainland refugees — mostly from Fuchien, a province even poorer than Kwantung.
And again, look at Singapore today! The jewel of the orient. The city-state that has soared to near the top of the charts in terms of almost every known metric of prosperity! All from the springboard of a tiny, little island.
Got those images? See the picture? Good! Now, imagine 188 Hong Kongs or 295 Singapores!
Because that’s China’s population today compared to those of the two city-states. And that’s what China is becoming today!
But this time, the Chinese are doing it with the natural resources, with the geopolitical clout and without the impediment of a colonial power.
This Is Why I’m Not Surprised
At Last Week ’s News
Last week, while most of America was preparing to leave for the Labor Day weekend, China was announcing new stats on its amazing growth:
* Through July, profits among mainland Chinese industrial companies are up a whopping 28.6% over last year.
* China’s GDP growth for 2005 was revised to a whopping 10.2%, even more than the sizzling surge estimated earlier.
* And all this is happening without much in terms of credit to stimulate consumer buying! Yet.
My Recommendations
First, unless your circumstances make it impossible, go to Asia. Take advantage of the relatively peaceful environment of most popular Asian destinations … and even some of the unpopular ones.
With few exceptions, you will be treated like royalty. And you will rarely need to be concerned for your safety.
Second, invest in Asia. Years ago, that was tough. You had to open a special brokerage account in Tokyo or Hong Kong. You had to worry about foreign-exchange risk and costly commissions. Not now! You can invest from the comfort of your living room on U.S.-government-regulated, U.S. exchanges.
Third, don’t miss any of our Money and Markets issues. Not every single one will give you a new investment idea. But if you peruse our recent issues at www.MoneyandMarkets.com, you can take advantage of a wealth of educational material and a host of investment recommendations which are still good buys right now.
Fourth, follow along when we go to Asia next time. We will take pictures. We will keep a log. And we will bring you some of the best investment ideas we can.
Good luck and God bless!
Martin
P.S. Our urgent recommendation to new ETF Power Trader subscribers — to profit from the China superboom — goes out tomorrow. So if you want to jump on board, you’d better do so today. Click here for more info.
About MONEY AND MARKETS
MONEY AND MARKETS (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Sean Brodrick, Larry Edelson, Michael Larson, Nilus Mattive, and Tony Sagami. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM. Nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical inasmuch as we do not track the actual prices investors pay or receive. Regular contributors and staff include John Burke, Amber Dakar, Monica Lewman-Garcia, Wendy Montes de Oca, Kristen Adams, Jennifer Moran, Red Morgan, and Julie Trudeau.
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