About five years ago, I was traveling on business to Los Angeles. I was surprised to find kiosks at Alamo that processed my reservation, assigned my rental car, and directed me to the spot for pick up. As I drove out, I marveled, "Wow, I was in and out of there without talking to single person!" Today, this once novel concept is quickly becoming common place.
At the recent Berkshire Hathaway shareholder meeting in Omaha, vice chairman Charlie Munger said that he thinks that stock market investors may be able to find better investment opportunities in China. He said, "I do think the Chinese stock market is cheaper than the American stock market. And I do think China has a bright future."
While many of us in America look to Silicon Valley for innovation, perhaps we need to look even further west as China's e-commerce giant JD.com is leading the way in drone delivery. The company has already delivered packages via drone and last month announced plans to build 150 drone launch facilities for unmanned aerial vehicle delivery (UAV) parcel delivery. They have already secured government approval (which Amazon has had trouble with in the US) in select provinces in China to make deliveries.
The last couple of weeks have been dominated by two topics: Greece and China. Last week we tackled what a Greek default means to your investment portfolio. This week we give our insight on the Chinese market which has tumbled in the last month. At Runnymede, we want to give our readers a different perspective than the alarmist headlines from other news sources. Unfortunately with internet news, they are paid on clicks so it's reliant on attention grabbing headlines, not necessarily the reality. We don't simply rehash what the mainstream news reports on. We look deeper beneath the surface to help you make informed investment decisions.
China Sets GDP Dial To 7; Hikes Military Spending
Mar 4, 2015 @ 10:43 PM
For Investors, A Better Way To Look At China
Dec 31 2014 @ 03:23 PM
"The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly." - Warren Buffett
Chinese Stocks Scoff At Hard Landing
Oops. Don’t tell the bears who have been waiting for China’s correction. China’s stock market is outperforming the MSCI Emerging Markets index by about 200 basis points year-to-date.
According to Bloomberg, the service sector in Asian emerging markets is poised to exceed 50% for the first time. This is a historic milestone as Asia shifts its role as the world’s manufacturing partner to developing self sufficient domestic growth via its service sector. China’s 12th 5-year plan lays out specific guidelines and incentives to create the environment necessary for extensive development in the service sector. In 2012, China’s service sector accounted for just 44.6% of GDP vs the world average of 63.6% so there is huge room for growth.
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