Little known to the western world, but an oracle in his own right, Billionaire Li Ka-shing made a prediction that the Chinese economy will lead the world when the economic slump ends. Known as “Superman” in China, the man built his wealth in much the same way as Warren Buffett. He opened a small plastics company and turned it into a worldwide investment firm with interests in many different industries.
Real Estate and Equities
Li Ka-shing made his next investment very clear; Chinese real estate and stocks are two investment classes that the investor sees booming in the next few years. He is credited with also predicting the 2007 bubble pop and carries significant weight in where many Chinese citizens place their investments. Making much the same calls as Warren Buffett did on US equities, Li believes that the best time to buy is now while assets are sitting at depressed valuations.
Investing in the US too
While Li maintains a “buy rating” on Chinese stocks and real estate, he’s also optimistic about investing in the US, which he believes will recover following China’s next big move. He expects a turnaround in the world’s emerging markets as consumers become more willing to spend and borrow and hopes that the turnaround will come soon.
Is the Bottom Here?
Li would not suggest that the market has already bottomed, but rather a long term approach best fits the present market as stocks slump. Recently, however, the world’s stock markets have been faring well as investors flee from safe-havens and accept additional risk to boost returns.
Wow, very interesting. China is growing at an alarming rate. Great post
Yea. The beijing Olympics was a huge catalyst to the growth. People are opening their eyes, and realizing the World is now “flat” so to speak.