Thursday, February 9, 2012

The Proficient Investor

Stock Market News, Contrarian Investing, Stock Picks

Don’t Pay Up For Speculative Earnings

Posted by SmallCapInvestor.com On December - 1 - 2009

Recent growth figures for China’s economy support further investment in the country.  Sure, it’s not an entirely “free” country and the blend of communism and capitalism is a far cry from our democratic and capitalist system here in the U.S.  But the numbers speak for themselves and China’s economy has been growing at an impressive 10% annually for the last three decades. And the government seems intent on continuing the rapid pace of economic growth, with the goal of improving the standard of living for its people.

The World Bank recently reported that China will surpass 8% growth in 2009, and will likely grow even more in 2010.  Bloomberg has said that the country’s manufacturing sector is growing at the fastest rate in five years, and industrial output will expand by 10.5% this year. This is all bullish news for China, and continued economic and population growth is certain to bode well for agriculture in the world most populous country.

You see, the Chinese government is concerned that climate change could spark a future food crisis and that the people could be at risk of famines similar to those that devastated the country in the early 1960’s.  So there is a big push to increase income for rural farmers and incentivize them to keep crop yields high…

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