Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

China’s Growth

Why China Is Hot for Travel Stocks

By | May 11, 2012

Chinese economyChina is rapidly become one of the top travel markets in the world for both domestic and international travelers. To deal with the increased travel, China has been steadily building its road, rail, and air infrastructure that will make travelling in this country much easier.

“China is the most attractive place in the world right now for hotels. That’s why investment capital is racing there and why the major international … Read More

What Carmakers Are Doing in China Now

By | April 25, 2012

Chinese economyThe Chinese economy has accelerated at a high level for a number of years. While China’s growth might slow down in the short term, the long-term forecasts for the Chinese economy are extremely bullish. Many firms are hoping for an increase in corporate earnings by expanding sales and production within the Chinese economy. While most Americans still think of the Chinese economy as production only, meaning cheap labor, several corporations … Read More

China’s Domestic Consumption Ambitions

By | April 13, 2012

China’s growthChina is set to announce its first-quarter gross domestic product (GDP) today and, trust me; there is global interest in the result. A weak result and speculation will swirl that the country will face a “hard landing,” which is not what the world wants to hear and could start a domino effect globally.

A month ago, Chinese Premier Wen suggested that GDP will come in as low as 7.5% this … Read More

More Signs of a Slowing Chinese Economy

By | March 26, 2012

Chinese economyWhen it comes to the world economy, everyone is expecting China to come to the rescue. While the financial authorities there have reduced China’s growth expectations down to 7.5% this year, this pace is still envied by the rest of the world. The problem is that such a slowdown from over eight percent is starting to be felt by Chinese citizens…and soon the rest of the world.

Chinese real estate … Read More

The Market’s Best Opportunity for Growth Investors

By | February 8, 2012

investment opportunityApple Inc. (NASDAQ/AAPL; Market Cap: $435.98 billion) surpassed oil giant Exxon Mobil Corporation (NYSE/XOM; Market Cap: $406.84 billion) to become the world’s biggest company on February 7. The upward move in Apple shares has been impressive and makes the company the most desirable technology play for investors, especially those who bought at cheaper prices. The maker of hip electronic devices made an astonishing $13.87 per diluted share in its fourth … Read More

China’s Economic Landing: Hard or Soft?

By | October 19, 2011

The Chinese economy saw its gross domestic product (GDP) slow to 9.1% in the third quarter, down from 9.5% in the second quarter and over 10% in 2010. GDP is at its lowest growth rate since the Chinese economy expanded at 8.9% back in the third quarter in 2009. The Chinese economy may be slowing, but the growth is still staggering given the muted growth in the United States and Europe.

Right Now We Investors Know a Lot—Stock Market Has Stability & Hope

By | September 1, 2011

The stock market is showing real strength at this time. A lot of stocks that were hit hard during the market’s recent correction are fighting back and making good progress in their share prices. Consider Caterpillar Inc. (NYSE/CAT), which is an important benchmark stock to follow. The company’s second quarter came in slightly below expectations, then the market began to correct. The stock was around $112.00 and dropped like a stone to $82.00 per share. After experiencing a recovery to just over $90.00 a share, it dropped again to the $80.00-per-share mark. Now the stock has broken past the $93.00-per-share level and its near-term price momentum looks to be intact.

The China Surprise: Continued Growth

By | April 18, 2011

Many thought China was set to stall in 2011, but so far this has not been the case. The country’s gross domestic product (GDP) growth continues to be impressive coming in at 9.7% in the first quarter, above the estimate of 9.55%, according to the National Bureau of Statistics. The results also show the significant growth difference between China and the U.S. and Europe. China is continuing to roll along at high speed, but it must be controlled.

China’s Auto Sector: Slowing, But Still Attractive

By | March 16, 2011

The key in China will be the rapid growth of the country’s middle class. In a recent research finding, Credit Suisse predicted that the household wealth in China will double to $35.0 trillion by around 2015 based on achieving sustainable GDP growth at or near the current growth rate.

The economic analysis is simple. The extra Renminbi means more cash to spend on non-essential goods and services. This includes furniture, real estate, vehicles, and travel.

Chinese Stocks Creeping Higher

By | March 10, 2011

I’m not sure if you have noticed, but we have been seeing a ratcheting up of Chinese stocks since early February. It’s amazing what a week-long holiday break will do. Just take a look at China.

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