A friend recently
suggested that I find a tutor to teach my two sons Mandarin. The search
is on not only because it is a great idea, but because it really will
be critical to their future. Despite the chorus of disbelief
surrounding the Economic super engine in, I am a believer, a big one in
fact. On a recent Fast Money show I quizzed former Commerce Secretary
Carlos Gutierrez on the validity of China's economic data. Happy with
his answer, I continue to look East just as I did in the first quarter
when China was the global stabilization force in the Armageddon storm.
brings some fresh data out of and further evidence of China's economic
strength. It appears that Premier Wen Jiabao's $586 billion stimulus
plan and loan growth strategy is working. The Federation of Logistics
and Purchasing reports that the Purchasing Managers Index continues to
rise, from 54.3 in September to 55.2 for October. China's export
economy looks good as well, with export orders climbing in October as
well. Clearly these numbers suggest the global recession has ended and
that the recovery process is underway. Domestically robust Chinese auto
sales rose above 1 million for the first time in September.
Chinese government has an 8 percent GDP benchmark for 2009; the newly
released data suggests the actual GDP number for 2009 exceeds that
possibly challenging 10 percent. Not so bad for the world's third
largest economy. The Chinese stimulus package mattered more to the U.S.
investor than our own. The economic figures coming out of China should
also matter to U.S. investors. The need to pay attention to China has
never been more evident than in 2009.
Past performance is not a guarantee of future results.
Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.