Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20

Market Oracle FREE Newsletter

Coronavirus-stocks-bear-market-2020-analysis

China Change to One Child Policy Population Boom Could Make You Rich

Economics / China Economy Jul 31, 2009 - 06:38 AM GMT

By: Uncommon_Wisdom

Economics

Best Financial Markets Analysis ArticleTony Sagami writes: They say the only thing constant in this world is change. That’s certainly true in Asia where some big changes are brewing.

1.4 billion — the population of China — is a lot of people. And for the last 30 years, Chinese couples have been limited to just one child.


The problem is, like the U.S., China is worried about the size of its aging population relative to its working class. So it’s taking steps to increase its working-age population …

Shanghai city officials are now aggressively encouraging its married residents to go forth and multiply. City officials are making personal visits to homes, distributing leaflets, offering emotional counseling and even financial incentives to have a second child.

You know me. Whenever I see an important, fundamental change … I look for the investment opportunity.

And the way I see it, all of those new Chinese babies will mean more diaper sales, which is great for Proctor & Gamble who does big business in China. However, the bigger opportunity will come from the tidal wave of Chinese consumers down the road.

The best way to explain that opportunity is to show you five long-term investment strategies that others, including the Chinese, are using to prepare for the forthcoming demand …

Long-Term Investment Strategy #1:

You may not have heard of the British beverage giant Diageo. But you’ve certainly heard of some of its best selling brands: Guinness, Smirnoff, Crown Royal, Cuervo, Tanqueray, and Bailey’s Irish Cream. Just last week, China’s sovereign investment fund bought a $365 million stake in Diageo.

Asians are very label conscious, and that applies to their adult beverages. And nobody understands that better than the people running China’s sovereign investment fund.

Long-Term Investment Strategy #2:

One thing that surprised me during my last trip to China was the huge number of black Audi sedans. They were everywhere! The German carmaker recently reported that its sales to China increased by 11 percent in the first six months of 2009 to 67,000 cars. What’s more, June’s sales of 13,265 cars, set a new record and was a 28 percent increase over the same period last year.

China is one of the few countries in the world where auto sales are growing — not shrinking — and Audi is pouring its resources and money into tapping that market.

Long-Term Investment Strategy #3:

China's sovereign wealth fund just put up $1.5 billion for a 17.2 percent stake in Teck Resources, a diversified Canadian-based mining company.
China’s sovereign wealth fund just put up $1.5 billion for a 17.2 percent stake in Teck Resources, a diversified Canadian-based mining company.

Quietly, slowly and steadily China is buying access to strategic natural resources, which it needs to fuel its growth. China Investment Corporation, the Chinese government’s sovereign wealth fund, purchased a 17.2 percent stake in Canada-based Teck Resources for $1.5 billion. Teck owns copper, gold, zinc, and coal mines in North and South America.

The Chinese used 13 percent (about 1.8 million tons) of the global supply of cooper in 2000. That number shot up to 28.5 percent (nearly 5 million tons) in 2008.

By the way, China also gobbles up more aluminum, zinc, lead and nickel than any country in the world! So you can bet that the Teck purchase is far from the last natural resource investment you’ll see China make.

Long-Term Investment Strategy #4:

To fund all those natural resource purchases, China is building up its foreign exchange reserves.

In fact, China’s mountain of cash topped $2 TRILLION for the first time ever. That’s even after spending $586 billion on its stimulus plan!

Long-Term Investment Strategy #5:

As China's population explodes in the coming years, you can expect consumer spending to explode as well.
As China’s population explodes in the coming years, you can expect consumer spending to explode as well.

The giant Swiss cement-maker Holcim AG is buying the Australian operations of Cemex for $1.64 billion. Holcim is also investing $234 million in Huaxin Cement, the fourth largest cement company in China. Even the Australian purchase is based upon the anticipation of doing some big, BIG business in China.

I mention the Holcim investments because you should consider doing exactly what they’re doing — investing in the companies that sell what China wants.

Whether it’s natural resources (BHP Billiton, Vale S.A.) agriculture (Potash, Bunge), fashion (Tiffany’s, Nike), restaurants (Yum Brands, Starbucks), construction (ABB Ltd, Shaw Group), or pollution control (Fuel Tech) …

… get ‘long’ whatever the Chinese are buying. Because the Chinese are going to buy a lot, lot more for a long, long time.

Best regards,

Tony

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit http://www.uncommonwisdomdaily.com.

Uncommon Wisdom 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