Listen to the professor
ltlee1
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Listen to the professor
Princeton's Burton Malkiel says U.S. investors are underweight China
By Barbara Kollmeyer, MarketWatch
Last update: 6:21 p.m. EDT May 15, 2008
LOS ANGELES (MarketWatch) -- When it comes to China, history is bound
to repeat itself and investors should be ready.
"People don't realize that in 1820, China was not only the most
populated nation in the world, not only with the most land area, but
was the greatest economic power in the world," said Princeton
University Economics Prof. Burton Malkiel, who had a packed room of
portfolio managers, analysts and certified financial planners hanging
on his every word Wednesday evening at a presentation for the CFA
Society of Los Angeles.
And in 20 years, China will once again claim that title, hence the
need for investors to make sure they've got the proper exposure, said
Malkiel, who wrote the recently published, "From Wall Street to the
Great Wall: How Investors Can Profit from China's Booming Economy."
Continued strong economic expansion will make this prediction a
reality, said Malkiel, who noted explosive growth in China the last 25
years, averaging 9% to 10% annually. In 2006 and 2007, growth exceeded
11%. "No nation in history has ever grown at this sustained rate," he
said.
Much of that growth owes to the culture of the people, a key reason
for his bullishness. "The hard-working Chinese energy makes New York
look like a sleepy town," he said.
Malkiel said investors who can only see as far as the 2008 Summer
Beijing Olympics should be looking ahead to even bigger events such as
the 2010 World's Fair, due to be hosted in Shanghai and expected to be
the most spectacular in history.
But he also points to several other factors that support the growth
picture: development and urbanization of the country's Middle and
Western regions, a large and increasingly educated labor force,
continued infrastructure investments, the government's determination
not to repeat past mistakes and also its unwavering belief that China
will be a major power. "They know they were the greatest country in
the world," said Malkiel. "They'll do it again."
[...]
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rst0wxyz
Napoleon Bonaparte said in the early 1800:
Beware of the sleeping dragon,...
It took over 200 years, but at least this dragon may be waking up
after all.
RussellT
news:3debffa0-b15d-4ef7...@s50g2000hsb.googlegroups.com...
It means, China's economy was larger than each of the European economies, as
separate countries. It does not mean it was greater than all the European
economies added together. Same logic for population. In fact, at the turn of
the century, China, Europe, India were about the same population. Europe's
slowed by wars, then by prosperity which results in less children per
capita. China's increased swiftly mainly due to Mao's policy of paying and
coercing women to have may children, so it is now out of historical
relations. Since China was unable to compete on technology, the idea was to
overwhelm by numbers. Not the first time in history, we saw in Quebec, 10-20
kids per family at one time, in a religion-directed policy, referred to as
"revenge (against the English conquest) from the cradle". Any large
population on the steep incline part of the economic growth curve, creates
enormous opportunities, compared with those on the flat prosperous part. I
met creeps and bums and drunks and wife-beaters, and many lazy people in
China. And the laziest were the government worker, of which there is nothing
as lazy in all of the US. I also saw many with the whip to their back -
don't work today, then don't eat today. That is not work ethic. Work ethic
is a voluntary thing that we choose. And Malkiel is a professor? A professor
of what? Shallow thinking?
bmo...@nyx.net
Malkiel was talking about 1820. Long before Mao.
Raymond
What an old rat you are! Are you still living in the sixties? Why
don't you drop dead ASAP to save the world some precious food
supplies?
fyf...@gmail.com
>
> - Show quoted text -
Malkiel is talking about Chinese work ethics in a free market setting,
but not under a communist setting. He is a professor preaching free
market but the command economy.
koki
>
> - Show quoted text -
yeah!
I think so!!!