The Shanghai market was up 7% this morning.
From Money Morning (Australia):
Despite its many problems, China remains such a strong long-term profit play that giving up on that country now would be like selling all your U.S. stocks at the start of the 1900s - before America created massive wealth by evolving into a world superpower, global investing guru Jim Rogers said in an exclusive interview with Money Morning.
“I have never sold any of my Chinese companies,” Rogers said. “You know, selling China in 2008 is like selling America in 1908. Sure, let’s say the market goes down another 40% - so what! You look back over 100 years, you look back from the beauty of 1928, or even 1938 [in the depths of the Great Depression], and there is somebody who bought shares in 1908. He was still a lot better off having not sold in 1908.”
During a 40-minute interview during a wealth-management conference in this West Coast Canadian city last month, Rogers also said that:
- The anti-travel policies China has put in place to reduce gridlock and slash pollution during the Summer Olympic Games may actually have created a “bottom” in China stocks - possibly creating a great entry point for long-term investors.
- The 34-day worldwide Olympic torch relay leading up to the opening ceremonies likely re-awakened China’s deeply felt nationalism - which will be key as that country strives to build demand for its domestically produced products.
- And noted that the country must still deal with such problems as pollution, rising inflation and an overheated economy....MORE