T Nation

Affected Economies Around the World?

Noob Question:

the US’s economy is crumbling. This is making others crumble.

which major Nations economy will not be affected or will continue to rise despite this?

thanks.

[quote]THE_CLAMP_DOWN wrote:
the US’s economy is crumbling. This is making others crumble.

which major Nations economy will not be affected or will continue to rise despite this?

thanks.[/quote]

after a few years of reconstruction, India and China.

I would also look at those countries surrounding China, they seem to get ready to get their part of the pie.

[quote]orion wrote:
THE_CLAMP_DOWN wrote:
the US’s economy is crumbling. This is making others crumble.

which major Nations economy will not be affected or will continue to rise despite this?

thanks.

after a few years of reconstruction, India and China.

I would also look at those countries surrounding China, they seem to get ready to get their part of the pie.

[/quote]

I hope so.

If economic growth in China falls below 6-7 percent for any significant period of time, the government may struggle to maintain control of the populace. The government would then have to severely limit economic and personal freedoms in order to maintain control, which would slow economic growth even further.

If China can hold itself together, nearby countries with good amounts of natural resources to export to China (eg iron ore) should do ok.

[quote]orion wrote:
THE_CLAMP_DOWN wrote:
the US’s economy is crumbling. This is making others crumble.

which major Nations economy will not be affected or will continue to rise despite this?

thanks.

after a few years of reconstruction, India and China.

I would also look at those countries surrounding China, they seem to get ready to get their part of the pie.

[/quote]

I agree. I’m looking to build positions in Malaysia and Singapore. I’ve already bought a small position in Singapore. I also like Australia.

The exchange traded funds EWM (Malaysia), EWS (Singapore) and EWA (Australia) are all paying a dividend of over 6%. One of them, I can’t remember which, is over 7%. Combine that with their favorable population demographics and I have to be a buyer.

Be careful with Australia. They are very linked to commodity prices which are in free fall right now.
I’d also be worried about liquidity issues in Malaysia and Singapore, more so in Mylaysia though.

End of the day decoupling is a myth as we are finding out as we watch the global markets tank along with the US.

If your investment thesis is that emerging markets will outperform the US over the next few years buy an equal ammount of DOG which will gget you short the dow. This way you take out all market volitility.

I hate to say it but I think Russia could very easilly go back to soviet era influelce pretty damn quickly.

People will tell you that There are too few young russian men for them to be an extremely powerful nation again. But there are many many young men wanting russian citizenship for themselves and families in countries surrounding them. Cumpulsary military service for citizenship of one’s family and their industrial and military power would skyrocket. We need to stop implimenting the wrongheaded left wing policies that are eating us from the inside out.

just sayin.