Value Investments can be hard to find. The companies that I will profile are all from big emerging economies such as China, Brazil, Indonesia, and Malaysia (to name a few). They are all real companies with consistent and growing revenue streams that have had valid audits. Let's find them together!

Monday, June 20, 2011

Commodity Time

An article came out in the WallStreet Journal explaining how China has been investing hard in South America for agricultural reasons.  Basically, China knows that its urbanization is displacing some of the farmland that exists there and needs to support its populous with food from other countries.  Brazil and Argentina are the biggest recipients of more than 15 billion dollars for foodstock and raw materials for manufacturing.
In other words, China is expanding and looking to put its dollars into tangible goods now.  Why?  In my opinion, its due to a weakening Dollar on a global level and while the yuan is still pegged to the Dollar. China should get rid of their dollars, then let the yuan appreciate.  I say this knowing full well that it is a poor decision for China as all the American debt they bought will then be worth less than if they leave it attached to the dollar as it is now.
As an investor, look to invest in the Chinese companies that are growing and expanding.  The inverse is true to happen for investors in Chinese companies with American Dollars. Now is the best time to invest!

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