I can remember a time, albeit 40 or 50 years ago, when made in Japan was a sure sign that you were attending the State Fair of Texas and had just won a cheap doll at one of the midway game booths. The only thing more lowly than made in Japan was made in China. No longer.
The Investor's Business Daily for June 29, 2009 lists five Chinese company stocks among its top ten picks. In fact,the number one stock listed is FUQI International, retailer of high quality gold, silver, diamonds and other precious stones.
The number two stock is VENCEINFO, a Chinese provider of outsourced software research and development.The numbers five, eight and ten on the list are also Chinese companies.
Investor's Business Daily lists 100 companies in its best of the week compilation. Chinese firms are not only in the top ten, but appear throughout the listing, i.e., Shanda Interact Ent appears at number thirteen with a note that reports "Chinese gaming firm flew past EPS and is up 283% in the past 12 quarters."
All this when at the same time nearly all American firms are struggling in the doldrums, and at a time when many American companies are being bought by the Chinese. The Chinese, according to a real estate acquaintance of mine, are also purchasing office buildings, shopping malls, large tracts of land for development, etc.
Would I be amiss in saying that I don't like the notion of huge Chinese investments in the United States which will allow them at some stage to be our landlord?
What do you think?
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