Follow The Leader: Investing In Chinese Service Sector Growth
According to Bloomberg, the service sector in Asian emerging markets is poised to exceed 50% for the first time. This is a historic milestone as Asia shifts its role as the world’s manufacturing partner to developing self sufficient domestic growth via its service sector. China’s 12th 5-year plan lays out specific guidelines and incentives to create the environment necessary for extensive development in the service sector. In 2012, China’s service sector accounted for just 44.6% of GDP vs the world average of 63.6% so there is huge room for growth.
Top 3 Investment Tweets from VCIA 2013
Congratulations to the Vermont Captive Insurance Association (VCIA) on its 28th Annual Conference. It was great to see the more than 1100 attendees, 100 exhibiting companies, and 60 expert panelists that convened in Burlington.
Chris Wang quoted at Mainstreet.com
Should You Invest in a Morally Reprehensible Company?
NEW YORK (MainStreet)—For Penn State alumni like David Ketchen Jr., revelations about the Jerry Sandusky child abuse scandal were devastating. Adding to the pain for Penn Staters, Ketchen believes, was ESPN's coverage of the scandal, which he thought sensationalized the story and questioned “the integrity of an entire university.”
Are your bond assets safe in a rising rate environment?
The bond bull market has been running hard for over 30 years but it appears to be over as long-term rates hit historic lows in 2012. Many investors have never lived through a rising interest-rate cycle and aren't prepared for a secular bear market in bonds. As you can see in the chart below, the last bond bear market lasted just as long as the current bull.
Rising rates can inflict significant damage to bond assets which are supposed to be the safe side of an investment portfolio. When interest rates rise, the market value of bonds falls and the losses can be substantial.