*China is taking on record levels of debt to keep its’ economy running. Sound familiar? Some say it can’t last. China has had the smallest of hiccups of all global economies, the nation grew at a brisk 8.9% rate, and many economists expect it to expand even faster over the beginning of the year. And it could.
Over the past decade China has spent on roads, bridges and infrastructure.
We have been making just a few men very rich.
Those bullish on China think the government will keep spending (as ours should) no matter what to keep the economy humming, given it’s relatively healthy domestic balance sheet compared with the U.S.. Skeptics reply that if the debt taken on by provincial governments is taken into account (much like really straightening out our state debt, many in bankrupty), that growth looks questionable.
Emerging markets in general are highly risky and America has plowed our funds over there to “protect ourselves’” from out own stock market.
Temptleton EMF (EMF) remains our “mirror mutual fund’ of choice as a superb way to play the emerging markets safely. No stop loss. Just buy on dips, and hold.
