Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Let Chinease Yuppies - Chuppies Power Your Portfolio!

Stock-Markets / Chinese Stock Market Nov 27, 2007 - 11:01 AM GMT

By: Money_and_Markets

Stock-Markets

Tony Sagami writes: If your family is like mine, Thanksgiving signals the beginning of the holiday season. Of course, we also have another very important way to kick off the holiday season — we attend a performance of the Nutcracker, in which my daughter Keiko dances.

Keiko has been doing this since age four, and excuse me for sounding like a proud daddy, but she is one of the most talented dancers in our community. This year, she played the French Maid and one of the Flower Girls ... and she was fantastic!


Like we do every year, we also enjoyed our traditional Thanksgiving feast and watched the Washington-Washington State football game.

I even braved the shopping mall on Black Friday. I was surprised, however, at how sparse the crowds were. Then again, I live in Montana, which is hardly the retail capital of the world.

Was my experience in line with what was happening elsewhere? That depends on the country ...

U.S. Retailers Fear a Shopping Apocalypse this Holiday Season

According to the National Retail Federation (NRF), the sluggish sales I saw in Montana were mirrored by the rest of the country.

The NRF said that more than 147 million shoppers went shopping last weekend but only spent an average of $347. That's down from $360 last year. More importantly, the percentage of shoppers hitting discount stores, like Wal-Mart, increased from 50% to 55% this year.

Clearly, Americans are feeling the pinch. And there are plenty of reasons why ...

  • Oil is near $100 per barrel.
  • The credit crisis is expanding.
  • The dollar is still falling.
  • Real inflation is rising at a torrid pace.
  • And real estate continues to weaken on all fronts.

Look, I'm not pointing this out to sound like Mr. Grinch. It's just that retail sales represent two-thirds of U.S. gross domestic product (GDP), so investors should be very worried that this retail weakness will push our economy into a recession.

Meanwhile, it will be a very different holiday shopping season across the Pacific ...

Miracle on Nanjing Road: It's A Wonderful Life for Chuppies!

China's economy isn't feeling a consumer spending pinch at all. In fact, the Chinese National Bureau of Statistics reported that retail sales soared by an 18.1% annualized rate in October to US$111 billion.

That's on top of a 17% increase in September and a 16.1% increase for all of 2007!

Those Chinese shoppers aren't just buying chopsticks or tofu, either. They're buying big ticket goods like crazy:

There will be a lot of holiday cheer in China this year!

Apparel purchases soared 32.6% ...

Jewelry sales jumped 37.5% ...

Furniture buying climbed 41.7%!

And don't get me started on the electronics boom! Heck, 82% of urban Chinese citizens own cell phones and 33% own computers. Asians love electronic doodads of all kinds.

Get this: As recently as five years ago, China bought only 1% of luxury handbags. According to a Goldman Sachs survey, the Chinese are now the third-largest consumers of luxury goods. They now account for 12% of the market and the country is expected to become the #1 luxury market in the world soon enough.

I've seen it with my own eyes — Louis Vuitton and Gucci handbags are more common in Shanghai than Manhattan. And the city's Nanjing Road is now the equivalent of what 34th Street in New York City once was.

Buddhism is the most popular religion in China, but that hasn't stopped the Chinese from embracing the concepts of Santa Claus and Christmas.

Christmas is an all-out consumption festival, as employers buy gifts for employees ... companies send presents to clients ... and boyfriends and girlfriends exchange packages with each other.

I was in China last December and every mall from Shenzhen to Shanghai was decked with boughs of holy, lights, and tannenbaum trees!

Chinese Christmas trees are called Trees of Light and Santa Claus is called Dun Che Lao Ren, which translates into "Christmas Old Man."

Talk about an economic miracle!

And that's why I suggest you ...

Put the Power of China's Booming Retail Sales into your Portfolio

The reason for the spending spree is simple. China is creating a new bulging middle class population. There are 100 million middle class Chinese today, and that number is expected to DOUBLE by 2010.

These "chuppies," or Chinese yuppies, are educated and have money burning holes in their pockets. As a result, Chinese consumption is estimated to increase by a whopping 18% a year over the next decade.

My point is simple — as an investor, you do not want to put your money where the consumers are cutting back and pinching pennies.

Rather, you should consider investing in economies where employment is rapidly expanding and where confident consumers are actively supporting their economy.

And right now, China is where that's happening!

I continue to believe individual companies that cater to the Chuppies will be huge winners. Examples include China Mobile and E-House. Alternatively, you can always look into a mutual fund or exchange-traded fund that targets Asia.

But either way, I encourage you to consider adding some Chinese investments to your holdings. That's the best way I know of to spread some holiday cheer to your portfolio.   

Best wishes,

Tony

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com .

Money and Markets Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules