The End of the Recession

So the recession is officially over, but tell that to the millions of unemployed Americans. Furthermore there is more than a fair chance that another round of quantitative easing will happen in the very near future. Certainly it is not "normal" for more stimulus to be required when the recession is over but maybe that is me calling a spade a spade.

Having just returned from a visit to China (the main reason that my blog went silent for a while) I can tell you that there is a stark contrast between our recession ended economy and their in full flight economy. Without a doubt they still have a way to go and the divide between the haves and the have nots is widening (which is particularly worrying), but there is no reason that I can see why in a couple of decades their economy will not be at least on par with the United States.

How the next few decades are handled politically on both sides of the Pacific will have a massive impact on the global economic landscape for the rest of the millennium, This will be very interesting to watch but as my long term view is of significant Chinese growth I am still a firm believer in investing in China.

To be sure there are numerous pitfalls with investing into China and Chinese stocks. The one that jumped out at me during my trip was that growth at the expense of cash flow and shareholders (through dilution) seems to be the norm. As a shareholder this does not please me in the least so I will be extra vigilant to ensure that the companies that I invest in have their shareholders at heart. I would advise that you do the same.