If you have read some recent news about China, you should have seen the astronomic growth of its economy in the last 20 years, becoming the 2nd largest of the planet.
China ́s GDP has grown to $7.5 Trillion, on an annual average of 9.71% since 1990.
Any number you analyze about the Chinese economy is impressive; but there are particular revolutions happening in the country: the massive shift from PC to Mobile devices, the battle for fighting the big pollution levels, and the I.T service growth.
China is a Mobile-first country when people have one or more Mobile devices to do everything inside the country: to shop, billing payments, request services among other actions.
In a recent research report conducted by the Boston Consulting Group and Ali Research (the Research division at Alibaba Group) called “Five Profiles That Explain China ́s Consumer Economy”, they analyzed in detail how Chinese consumers are buying services today, and how the expansion of consumption is only growing to huge numbers:
Between now and 2021, the country will add $1.8 trillion in new growth alone, presenting a huge opportunity for consumer companies
$1.8 Trillion is a number who made us to think about how to play here as intelligent investors and to analyze the best organizations who are capitalizing on this growth.
The whole objective of this report is to present you some of the best Chinese organizations who are disrupting the technology sector and have expanded to other fields as well, making strategic investments and acquisitions to increase cash flow generation and diversify its positions.
But you should be wondering: Why to select China as an emerging market when many of the media companies (CNBC, Marketwatch and many more) are saying China is in big risks?
The reasons are many, but we at The Panda Way are betting on just one: The U.S markets are more expensive every day, but they just tell you that you have to buy right now at these astronomical prices.
But there is one important matter they are omitting in the reports:
The U.S Federal Reserve announced on September 20, 2017 that began to shrink its $4.5 Trillion balance sheet.
And you should be wondering to yourself: Why this matters? It’s very simple: This happened before in the Global Financial Crisis in 2008, when they began to print out of thin air trillions of dollars: $3.5 Trillion, exactly.
This brought a lot of consequences, but as an investor, you have to take into account in one in particular: the price of assets increased dramatically, including debt rates.
As a savvy investor, you have to pay close attention to the amount of debt a company has, especially for unhealthy levels.
From 2008 to date, there are many companies in the U.S with an absurd amount of debt, and when you see that U.S Federal Reserve wants to shrink its pockets, this means that fewer companies will have access to this capital, and the effect in the U.S Markets could be devastating.
So, it’s time to move on. It’s time to find massive profitable businesses outside of the U.S, which they are not affected by this news.
That’s why we here at The Panda Way, we want to help you to gain your financial freedom thinking in a global perspective, and not to bet all your money in businesses which depend of the U.S economy.