Between now and 2020, the Chinese economy is forecast to grow at 2.5x the rate of the UK economy. This means that while China's economy is 3.85 times bigger than the UK's economy today, in three years' time it is expected to be 4.55 times larger.
Beyond that, it seems highly likely that China's economy will continue to grow faster than that of the UK. That's particularly pertinent since the uncertainty created by Brexit makes the UK's economic future seem highly uncertain.
All of this makes me more bullish on consumer goods companies which are focused on China. After all, the world's second largest economy is transitioning towards a more consumer focused economy where higher wages are due to fuel higher demand for consumables.
Burberry (LON:BRBY) is well placed to benefit from this through its strategy and operational changes, while its valuation indicates that it offers good value for money in my view.
by Zak Mir | Trading| 1 mins. to read It has been a long journey for shareholders of Nostra Terra Oil & Gas (LON:NTOG). The big question is whether or not the enthusiasm of its CEO, Matt Lofgren, will be able to take the company to the promised land.
by Nick Sudbury | Funds| 5 mins. to read Despite all the concerns about Brexit and Trexit, 2016 turned out to be a surprisingly good year for global stock markets with the Dow and the FTSE 100 starting 2017 at or near to all-time record highs. Some people see this as a really bullish sign, but those with a more cautious attitude might want to put some money into less correlated areas.
by Evil Knievil | Evil Diaries | 1 mins. to read It is very striking that Beximco Pharma (LON:BXP) keeps forging ahead. It is now 87.5 taka on the Dhaka Stock Exchange or 87p in sterling equivalent.
by Zak Mir | Trading | 1 mins. to read Perhaps the most polite description of shares of Central Rand Gold (LON:CRND) is that the shares have been one of the Cinderella plays of its particular sector.
by Filipe R Costa | Economics | 8 mins. to read I wish all our readers a Happy New Year! I hope you all enjoyed the festive period and are now prepared to fasten your seat bells for a market journey that is expected to be even more exciting than 2016.
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