There’s no question Asia will remain the world’s factory for the long term. The factories are built and have the capacity and technology to produce valuable goods for years to come. Once the global economy starts to grow again, these factories will return to full capacity. This is a long-term positive for Asia, too, but the development of a sustainable domestic demand driven economy–a burgeoning middle class–will be the real game-changer.
Monsanto shares have been affected by the weakness in the market, but the underlying business is extremely healthy. In fact, the seed business is currently in a sweet spot as global food demand changes dramatically.
The only places to find growth in 2009 will be the emerging market economies. All the developed nations are most likely looking at negative GDP growth next year.
As long as investors are consumed with worry about the state of the global economy, commodity-producer stocks will be hard-pressed to mount a sustained rally. But this is an excellent time to lock down the sector’s best names at prices not seen since early in the decade.
Time has passed, but once again we’re finding that investors don’t care about fundamentals. This time around, though, no one is willing to pay anything for strong companies at discounted prices because all are certain that this recession will prove to be like no other.
Last week was the first week of foreign investor net buying since May. Given the negative sentiment and depressed valuations, this is a positive factor. Although a positive week doesn’t make a trend, Asia remains the best long-term bet for investors.
Economic numbers, like the markets, are stretched to the downside, and it shouldn’t be too shocking to receive a positive surprise in economic activity early in 2009. This may not be the economic bottom, but it should put a floor under the extremely distressed global economy.
US authorities are in full socialization mode, where the capitalist model is being thrown out of the window. Look at the actions, not the words. The more irresponsible a company or individual has been during the past 10 years, the better its chances of being saved. Even the grotesque US automakers will be bailed out, for the nth time.
Not long ago investors had few qualms about paying 30 times earnings for almost any company; the dot-com frenzy was in full swing, and prevailing sentiment suggested that the new technology boom would allow companies to enjoy endless years of strong earnings growth.
It’s clear that the turn toward socialist-oriented solutions is now becoming reality. US authorities are in full socialization mode, where the capitalist model is being thrown out of the window. Look at the actions, not the words. The more irresponsible a company or individual has been during the past 10 years, the better its chances of being saved. Even the grotesque US automakers will be bailed out, for the nth time.
