Keep Your Eye on the Prize: Asian Demand

There’s no doubt about it: When it comes to China, a ton of attention has been paid to the Asian giant’s moves to stem capital outflows and manage potential Trump administration trade policies.

While those are hot topics, it takes focus off a much bigger story: China’s improving economy, robust growth and continued expansion.

Consider figures released earlier this week showing December Caixin manufacturing PMI coming in ahead of expectations and rising to levels not seen since January 2013. The data also showed inflation rising at its fastest clip in nearly five years. Take a look:

The rising inflation theme also shined through the November CPI figures: They now stand at a seven-month high. In the meantime, producer prices have improved to a five-year high.

And while it’s always a good idea to keep a firm hand on too much inflation, rising prices are good for businesses and incomes. It also suggests little concern over tightening monetary conditions, another plus for growth.

But there’s more …

==> Strong Chinese car sales, longer traveling distances and an uptick in export demand fueled a 6% boost in gasoline demand in November.

==> China’s National Development and Reform Commission noted a nearly 14% year-over-year increase in railway cargo volumes in November.

==> Power consumption metrics in November were up 7% from year-ago. In fact, China’s National Energy Administration (NEA) just this week announced plans to invest $360 billion in renewable power into 2020.

And when it comes to trade, China’s Stats Bureau turned more positive on 2017 trade conditions, despite concerns over potential trade snafus under a Trump administration.

But it’s not just China with strong economic standing …

* Data earlier this week showed manufacturing activity in Taiwan was above expectations and at the highest level since April 2011.

* In Singapore, fourth-quarter GDP was up 9.1% from the prior quarter and more than two times stronger than analyst expectations.

* November import activity in Hong Kong up 7.6% from same period last year and sharpest increase since January 2015.

And that’s just a short list.

The fact is I could go on, but I think you get the point: Major underlying factors like an expanding population, rising incomes and dynamic monetary policy keep the Chinese and Asian growth story alive.

That’s exactly why I am looking to gain more exposure in the region. But it’s tricky: You have to know when to get in and when to get out. And of course, where to focus your investments. And that’s exactly what my members enjoy — via my boots on the ground there and my Artificial Intelligence Neural Net E-wave, which we are now starting to apply to the entire region.

Needless to say, China — and Asia in general — are ticking to a different SuperCycle than the West is, which is one of the reasons I like it so much. Another huge profit opportunity and hedge against the demise of the West.

Best,

Larry

 

 

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Comments 11

  1. Larkin Barnett January 6, 2017

    Make charts more readable PLEASE?

    Reply

  2. Ken Baker January 6, 2017

    Surely the increase in growth throughout the Asian region is very
    good news for a small section of the West, namely Australia and New Zealand.
    By the way, New Zealand must be one of the few countries in the western
    world that didn’t succumb to quantitative easing and is now flourishing
    thanks to record numbers of Chinese visitors. Tourism is booming, plus interest
    in immigration from English speaking countries and improved dairy results,
    New Zealand is in the healthy position of being in surplus now and
    predicted to be for the rest of 2017. Even more so if China continues to improve.

    Reply

  3. Badford's IRA January 6, 2017

    So Larry, with the Asian economy supposedly improving, What is your forcast for PM’s Miners? Thanks Badford!

    Reply

  4. Joe Alderick January 6, 2017

    And yet, the S&P 500 and Dow continue to make all time highs…..!

    Reply

  5. Jordan January 6, 2017

    What about Thailand how is their economy now that the King has passed.

    Reply

  6. Sam A January 6, 2017

    Hi Larry, where do you see Australia in the context of this article? Is Australia’s economy going to improve or deteriorate, given its heavy dependency on China, I would presume it will improve? And where does the AUD stand in this, as well as in relation to the USD becoming stronger.

    Thank you.

    Sam

    Reply

  7. Orion Landden January 6, 2017

    Hello Larry Edelson—
    We regard this decision on your part to pursue Economic and other cycles in the Eastern Region of the globe to be landmark (or, indeed, potentially revolutionary) in nature and importance.
    Best of luck, and wishing we could participate in some way.
    Sincerely,
    Orion Landden

    Reply

  8. Sonny January 6, 2017

    so what should we be buying over there Larry ? I’ve fallen on hard times here in Ohio and need some lightning and quickly

    Kindest Regards

    Sonny

    Reply

  9. Paula January 6, 2017

    Hi Larry, Thank you for not only explaining the financial crisis that awaits us and what we can do to stay safe, but also the historical relevance of the “K” wave. History is so important, but as you pointed out, is absent from our education system.
    I read the “K” wave pamphlet. It was a shame the man had to die for telling the truth.

    Reply

  10. G13Man February 7, 2017

    so on one hand , china is going deeply in debt [ like the USA ] and will fail
    and on the other hand is worth of certain investments [ like the USA ]
    sigh
    probably why i do not join ur news letters

    Reply

  11. G13Man February 7, 2017

    i agree with
    Larkin Barnett January 6, 2017

    Make charts more readable PLEASE?
    thanks

    Reply