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China Ascending

I’m traveling through China and Tibet right now but the thing that I’ve noticed is the wealth that has been created since I was last here.

Foreign luxury cars are everywhere, including Fords, Chevys, Buicks and Cadillacs. The consumer is alive and well in China and spending furiously.

The stock market here was in the dumps for a few years but it has worked itself into a position where it is now trading At a single digit P/E ratio compared to the US market at nearly double that.

There is definitely value here and momentum seems to be picking up – but many structural issues remain like over building and huge debt levels.

However, it warrants more research when I return home. I am collecting the names of companies that appear to be thriving and we will be analyzing them in due course.

I am posting this with the WordPress app from my iPhone plus China blocks access to YouTube, so no video today.

Until next time,