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INVESTMENT IMPLICATIONS:
12) Chinese bust will be felt by resource rich export country economies and companies all over the world. 13) China bust will be somewhat contained but will still result in 1990 version of Japan zombie companies and banks. 14) China bust combined with cyclical busts within other developing economies threatens to send world economy back into recession. 15) Pollution and the long term cost curves will cause Wind and solar usage to continue to grow dramatically throughout the world. 16) Developing economies will face increasing food costs, while most of their economies decline.
INVESTMENT STRATEGY:
1) Avoid industrial commodity sensitive companies, currency exposure to developing countries, and their stocks. 2) Avoid Nifty Fifty valuations, despite the long term growth potential. Avoid most Biotech stocks, as the index is bubblicious. 3) Build cash by selling out of high flyers and large cap index funds. 4) Look for growth ideas in U.S infrastructure related companies, and U.S. clean energy stocks. 5) Look for beneficiaries of micro trends. Some examples: A) China allowing game console sales after 13 year ban. Chinese PC gaming industry grew 38% in 2013. AMD is a direct Beneficiary B) Home soda makers replacing lugging cans and bottles from market. Soda Stream (SODA) is a direct beneficiary.