China’s industries grew 16 percent this year

March 25, 2006

China's large and medium sized industries grew 16% in the first two months of 2006. These industries include textiles at 15%, computers and communication equipment at 25%, and automobiles at 40%. The total output of these industries equaled $139 billion.

What It Means:
Many experts are saying that emerging markets are overvalued, and that after three years there should be a correction, similar to that seen in the Middle East markets. However, this type of growth supports the continued vitality of the region, and will support continued stock growth in your portfolio.

Action Steps:
Do not sell the Asian part of your portfolio yet, even though it would be tempting to take gains off of the table. If you haven’t invested in an Asian mutual fund, it is not too late to get in. Even if there is a correction (if and when, no one knows) it would be a healthy thing for the long haul.

Source: People’s Daily Online websites