A space photo such as the one of China above is a convincing view of the level of industrial activity. Areas of industrial activity and the related energy use are lit up. The dark areas show a complete lack of industrial activity.
This is a continuation of yesterday’s blog in which Beijing claimed that in the second quarter of this year, China had a 6.2% annualized growth. Reviewing data much of which was officially unreported, a Sunday Wall Street Journal article said: “…there is a growing belief among economists, companies and investors around the world that the real picture is worse than the official data.”
Bluntly stated, the Chinese government is lying about its economic growth. Belongs to the same club as President Trump.
Observations certified by Space photos like the one above show a contraction of industrial activity, not growth. Then there is a web-search index which shows the number of workers who return to work after a major holiday. These numbers are down sharply.
Some Monday Morning Millionaire Program members want to know why the program does not recommend markets other than the American one.
It comes down to the third habit of the six habits of Monday Morning Millionaires, which is, buy the US economy as a whole. (That is, don’t pick stocks, don’t pick countries other than the USA.)
History shows that investors could not do much better than holding shares of the largest 500 companies in the most diversified economy in the world. Further, for investors looking for Chinese exposure, the majority of these companies have a market presence and most countries, including China. That eliminates the risk of being victimized by a culture of twisting facts.
If you are interested in details, see in the Wall Street Journal article.
Please note that the Monday Morning Millionaire Program contains opinions only. It does not provide any investment advice or endorsements.