Just as markets are beginning to climb back up, we are receiving more stressful news from Europe and quite a bit of talk about the economic slowdown in China. The latter is of more value to what I do right now.
The June 4-10, 2012 issue of Bloomberg Businessweek has a fantastic article. Please read it.
The following is the part that gave me more to think about.
The Slowdown in China
I recently wrote about economic indicators that are intriguing. Take a look at these as quoted from aforementioned article:
Steel – Inventory of five major steel products is up 39% since January. Major mills reported first-quarter losses of more than 1 billion yuan.
Pirated Movies – They’re selling at Beijing’s Yaxiu Market for 7 yuan, down from 10 yuan a year ago.
Wine – Sotheby’s says Bordeaux and other fine wine prices may revive if China starts a successful stimulus program.
Cell phones – Mobile-phone sales in China are down 13% from a year ago, according to industry consultant Gartner.
Cars – Total vehicle sales fell 1.3 percent in January through April, the worst decline since 1998.
Real Estate – Eighty percent of the new residential buildings in the Hainan Island tourist destinations of Haikou and Sanya are vacant.
What Does It Mean?
To understand what this may mean to your investment portfolio, contact me. There will be winners and losers if this trend continues. ~Susan
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