How China’s Economy Passed the United States

Doug Fabian

Doug Fabian is known for his expert knowledge of ETFs, bear funds and enhanced index funds to profit in any market climate.
[interlocking Chinese and American flag puzzle pieces]

China Puts the Smackdown on the United States

Advertisement.

In the United States, we used to be able to chant, “We’re No. 1; we’re No. 1.” Well, we can’t do that anymore — at least when it comes to the size of our economy.

According to the International Monetary Fund, when you measure national economic output in “real” terms of goods and services, this year China will produce $17.6 trillion vs. the United States, which will produce $17.4 trillion.

While this total output figure doesn’t tell the whole story, it does suggest that at least by this important metric, we aren’t No. 1 anymore. That distinction belongs to our neighbors in the Far East.

Advertisement.

For investors, China’s smackdown of the United States here is something that should be embraced, especially because size does matter when it comes to investing in international markets.

Take a look at the two-year chart here of the Shanghai Composite Index ($SSEC). As you can see, Chinese stocks trended lower from early 2013 through mid 2014. Since then, however, there has been a huge rebound in Chinese stocks.

SSEC_120514

This big rebound has taken place due to various factors, including Chinese stock market reforms, an interest rate cut by the People’s Bank of China and a stabilization of economic growth.

Advertisement.

I suspect that this trend will continue in 2015, as investors look to ride momentum in international sectors and also as stocks here at home rise to overbought levels. Then there’s the issue of the increasingly strong U.S. dollar, which could actually have a negative effect on U.S.-based equities.

Exclusive  ETF Talk: One ‘CHIQ’ Worth Investing In

In my Successful ETF Investing advisory service, we’ve been on board the China train for some time, and my subscribers currently are profiting from several funds pegged to the fate of the new global economic No. 1.

If you’d like to find out more about how you can make money investing in China, check out my Successful ETF Investing newsletter right now.

Cambrian Wisdom

Advertisement.

If it was up to me
I would’ve figured you out
Way before the year clocked out…

–Coheed and Cambria, “The Suffering”

This time of year, we tend to start looking back and trying to figure out what we did well, and what we did wrong, during the previous 11-plus months. This can be a valuable undertaking, but just make sure you remain objective when doing so. Doing so will allow you to learn how to repeat the success and to learn from your mistakes.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Weekly ETF Report readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

In case you missed it, I encourage you to read my e-letter column from last week about the benefits offered by investing in ETFs. I also invite you to comment in the space provided below.

Advertisement.
share on:
share on:

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader
LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader
LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener
LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program
LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader
LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor
LEARN MORE HERE

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle
LEARN MORE HERE

DayTradeSPY

DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops
LEARN MORE HERE