China or Japan? My Investment Choice

på


 by George Leong

 So... will it be sushi or dim sum?

A friend said he was looking at investing in Japan and felt the country could return above-average returns along with moderate risk. He asked my opinion. Quickly, before he was able to finish his question, I said "China" without any hesitation. Buy Chinese stocks I said.

In my view, China is a far superior choice for capital than Japan.

China overtook Japan as the world's second largest economy and, in about 15 years, the Chinese economy is expected by pundits to become the world's largest economy. Clearly, in Asia, it has become a tale of two cities. While China continues to report near double-digit gross domestic product (GDP) growth in spite of some stalling, Japan is struggling along and unable to grow.

And while Japan has faltered over the past two decades, China has caught the world's imagination and used its massive cheap labor workforce to develop the world's largest manufacturing landscape opened for business for global manufacturers looking for cheap labor and lower cost to produce goods. Go and rent a movie called "Manufactured Landscapes," directed by Jennifer Baichwal, and you will be left astounded by China's manufacturing sector.

China is a dominant world economic power as well as a basin for incredible and sustained growth across many sectors, from industrial, to mining, to technology. If it is saleable and in demand, then you know that China has the consumer market for it.

China has a population of about 1.3 billion people; about five times the size of the United States. The size of the middle class is over 300 million and is expected to grow exponentially, as migrant workers have more disposable income. Presently, only a small fraction of China's GDP is driven by consumer spending compared to about 70% in the U.S. China wants to drive consumer spending long-term.

The World Bank estimates that, within five years, there will be 542 million middle-class consumers in China. I have heard estimates of up to 700 million!

Gartner Research estimates that China will represent 72% of the world's growth within the next 20 years. According to the Carnegie Endowment for Peace, China's economy will surpass the United States by 2035 and grow to be twice as large by 2050.

To grow, China will continue to spend money. With over $2.5 trillion in reserves, cash is not an issue.

I feel that the fiscal spending on infrastructure in China will continue to be increased by the government as the country grows. China will remain the top growth region going forward, while numerous other global economies are contracting, such as Europe and the U.S.

I firmly believe that China's need and desire to build up its infrastructure to modern standards and beyond will drive the demand for raw materials over the next decade and more.

Over the next five years, there will be a massive build-up of infrastructure as China comes in line with the rest of the industrialized world.

According to China's Transport Ministry, about $732.25 billion has been earmarked over the next three to five years for roads, waterways and ports. The country is also spending significant funds in the railroad sector. In addition, there is $710 billion for the country's rail system. China is building the largest high-speed rail system in the world.

The country's high-speed rail (defined as trains travelling with an average speed of over 120 mph) infrastructure is expanding rapidly. As of January 2011, the country's high-speed rail network is comprised of about 5,193 miles, according to chinatourmap.com. According to the plan, the country's high-speed network will expand to 8,123 miles by the end of 2011 and 16,000 miles by the end of 2015.

China will also spend $40.0 billion over the next two years on its new third-generation and fourth-generation mobile communications networks, according to the Ministry of Industry and Information Technology. In addition, China will spend on its electricity grid, as it brings power to over 1.3 billion people, along with the incredible industrial base.

So, do you invest in China or Japan? Isn't it obvious?

Retire on This One Hot Stock! 

This stock is up 232% since we first picked it. Our expert analysts say it will go up another 100% in the next 12 months! Our top 19 stock picks were up an average of 173.57% in 2010 (not a misprint). See where we are making money in 2011 and get our combined 100 years of investing experience working for you starting today.

Get your FREE report on our top stock pick immediately here.



Retire On One Hot Stock! Sign Up For Your 100% Free Profit Confidential Newsletter!

Article Source: http://www.articlesphere.com/Article/China-or-Japan--My-Investment-Choice/266940

Comments

Post a Comment

Luxury Travel Blog for the Resident

We try to share with you this blog, tips, information knowledge, and experiences related to global tuirism. We have also frequently linked to some unbeatable price comparison services within the tourist industry where you can easily compare and book your next trip and accommodation.

As everyone understands, it costs to maintain web pages and blogs on the internet with up-to-date information that is regularly updated. Therefore, please feel free to support our business if you can. We gladly link to interesting articles and stories if you want to contribute with this.

For national, regional and local tourist agencies, travel companies, airlines etc. This way, through a number of channels, we can offer effective marketing opportunities. For example, we have our own adserver and adnetwork for Pay-Per Click advertising

We also offer the opportunity to advertise on this first page of our blog, if you want to be visible here with your tourist information then we can recommend that you hear from us so that we can set up a featured campaign for your advertising.

Featured ad here costs $ 300:-/year and we guarantee 50,000 unique visitors to your ad.



Featured Online Travel Booking Services - All inclusive travel planning

If you are really tight on the budget, booking an all-inclusive holiday package can save you a big chunk of money. Because these all-inclusive package holiday companies have close ties with hotels & popular tourist spots in the country, they can get a better rate than you can! Hence, normally, the discounts & savings will be passed on to you - the all-inclusive holiday customers, tourists & visitors!

Ever tried to cram all your travel plans into one small budget & short schedule? If you have, you will know the true meaning of a frugal & haphazard holiday. Some people think that all-inclusive holiday packages leave very little space for them to have fun & there is no flexibility. But they're wrong.
You can save money with an all-inclusive holiday package

All-inclusive vacations are hassle-free

Planning a holiday can give you headaches! When you book an all-inclusive holiday package, you are actually giving yourself the chance to enjoy the holiday without having to worry about the nitty-gritty details. Your accommodation, food, entertainment & travelling are all taken care of. The only thing that you & your relatives members have to worry about is how much fun you are going to have during the holiday. Some tourists & vacationers like to get an all-inclusive holiday package because there is lack of time. Some people have to contend with last minute plans. The all-inclusive holiday packages can be real life savers in this instance. Even honeymooners love all-inclusive packages because they don't require to have to worry about meals, entertainment, activities, transportation & accommodation when they should be focused on each other!

Mealtime fun with all-inclusive holiday packages

One of the most worrisome things for tourists is WHERE to eat. Because they're not familiar with the country & the booklets that they can get from airports are not very accurate (most of the time), meal times are worrying. When we are visiting another country, they require to try another delicacy, something old..and cheap. Who better to tell you where to find it than an all-inclusive holiday planner? they have all the ropes, hang on to them & enjoy the meal!

You can read all you require from the web or from books on the different cultures & religions in the country that you are visiting.and yet, whenever you are on an all-inclusive holiday package, the tourist guide will STILL tell you things that surprises you! & this is an important point because you don't really require to step on someone's toes when you are in THEIR country.

All-inclusive packages - tells you the cultural differences between races & religions

Besides all of that, with all-inclusive holiday packages, you don't have to worry about where to have fun because they plan everything for you. All-inclusive holiday packages are definitely worth it!


Cheap Airline Tickets: Great Ways To Save

A round-the-world trip remains the world's greatest journey. For two out of every three people, this is the ultimate travel experience, according to recent research. Needless to say, in a world obsessed by travel, travelers and travel agents are both looking for the cheapest tickets and airfares available.

Cheap airline tickets, in most cases, can be obtained from wholesale dealers and discounters.

If your requirements are simple - you want a round-trip ticket from one place to another, you have a particular airline on your mind and you have definite dates; then you can go directly to the source - to the ticket discount agency which buys cheap tickets in bulk from wholesalers and consolidators.

In real life most trips require more planning, and most people need a help from the agent to figure out what would be the best air ticket solution for their particular case. Cheap airfares to a particular region can often be found with local airlines that specialize in that country. Sometimes an agency that operates and retails tours to a particular country will have a discount agreement with the national carrier and will sell discount tickets on that airline.

With a bit of research through travel magazines aimed at the particular country of your choice, you can often find agencies dealing with national carriers for that country. For the cheapest possible airfare to many places the most affordable prices are often found in local travel agencies that deal with a particular destination selling round-trip discount airline flights - most likely to the capital of that country and a few main cities.

Sometimes you can find a really cheap air ticket with a discount retail agency that specializes in trips to a wider range of destinations or to multiple destinations. Through the sheer number of tickets that they sell they can command a reasonable discount. However, keep in mind that most advertised prices do not include taxes, luggage fee and airport tax, so the cheap airfare may end up being not so cheap. Best to read the small print to clarify exactly what you are getting before you purchase a ticket.

Another trick of the trade is for agencies to grab attention by indicating the lowest possible prices, which only apply on specific dates in low season. You’ll find that all agencies do this, even the most expensive ones so, don’t be surprised if you get a quote at double the price from what was displayed in the ad.

Airlines usually publish their scheduled flights and prices six months in advance. If you have decided on a destination it can be a good opportunity to get an ‘early bird’ discount by booking well in advance. Keep your eye on the travel press and also airline web-sites. There are often special discounts and incentives aimed at travelers who book online, as carrying out a booking online is cheaper for the company than through an intermediary who will take a commission.

However, although you can expect to get the cheapest air ticket if you start searching many months ahead, there are some exceptions. At times like Christmas or other periods of high demand the prices are usually inflated and planes fill up many months in advance. If you can be flexible and travel on actual holiday days such as Christmas day or New Years Eve you can find some pretty attractive discounts.


Pick A Hotel With Personality!

What does individuality mean in the hotel industry? As far as boutiques are concerned, it’s not just about being a little bit quirky; hanging modern art on the walls, sticking some designer chairs in the rooms or making all the fittings stainless steel. It’s about a design theme that runs through the hotel from start to finish and affects everything from the cushions on the sofas to the dessert menu in the restaurant.

Location

Where does the inspiration for this individuality and personality come from? For some hoteliers, it comes from the location. It’s unsurprising that boutique beach hotels are clean and simple, bringing the colours and textures of the coast into the building and using architectural design to allow guests to feel at one with the sea; large windows, folding doors and seawater pools for example. In contrast, small hotels that are based in cities often reflect either the present-day energy or the historic past of their location. Through the use of rich colours or minimal materials, antique furniture, period art and a variety of textiles, designers can create a hotel that truly reflects its location.

Culture

Many hotels show influences from different cultures – and not always from the culture that’s readily associated with the hotel’s location. Therefore, New England simplicity or Asian colours and textures can show up in hotels in London or Sydney and work well, as long as the concept is properly thought through and sensitively carried out. Extending a cultural theme to rooms and cuisine often requires a lot of research, particularly when it comes to sourcing the right furniture and accessories, but if the end result is a truly individual hotel, then the preparation is worthwhile.

Community

A true boutique hotel becomes an intrinsic part of the local community, and this is part of its individuality. Chain hotels are just places to stay; boutique hotels are places to be – whether it is locals using the restaurant or trendy city workers drinking in the bar; using the produce from the farm down the road or sharing spa facilities with a local retreat, boutique hotels make a real effort to integrate into their local community rather than being set apart from it.



Sincerely

Roger K. Olsson