What Golden Investment Opportunities Can The World Factory Bring To Us?

How did the wealth of Chinese people accumulate over the past decade or so? It comes from the release of the dividend reform of China's population reform. After more than ten years of development, the people of this land have begun to enter a prosperous life.

Smart investors are looking for the next fortune gold mine. The trend of "world factory" will have a profound impact on the whole world in the future. Everyone wants to become Buffett of stock. This time, can we seize the gold mine of the fortune of the world factory and become a little Buffett? What is the next world factory for us? What gold investment opportunities can the world factory bring to us? Let's have a glimpse of it.

The "world factory" in the first era is Japan.

In 1950, the United States focused on supporting Japan's heavy industry. Japan seized the opportunity to achieve rapid development. In the 20 years of 1950~1970, Japan's GDP grew by an average of 9.3%, and Japan made a successful entry into the global market.

If we invest in the Nikkei index in 1950, how much will it give investors in 1970? The Nikkei index has risen from 95 in January 1, 1950 to 6325 in January 1, 1970, and the return on investment has been as high as 66 times. The gold content of the four words of the "world factory" is self-evident.

After 1970, the "world factory" was hosted by four neighboring Asian small dragons, especially in Taiwan, China.

China's foreign trade in Taiwan has been in surplus since 1970. The difference in 80s of last century has expanded rapidly from 1 billion 400 million US dollars in 1981 to US $10 billion 600 million in 1985, and it has increased to 15 billion 700 million US dollars in 1986.

The share of Taiwan's GDP increased from 2.9% in 1981 to 20.3% in 1986.

Meanwhile, foreign investment in Taiwan increased rapidly from 140 million US dollars in 1976 to US $1 billion 420 million in 1987, an increase of more than 10 times.

In January 1, 1970, the weighted index of the Taipei stock market was only 95 points. By January 1, 1990, the index rose to 12200 points, and the return to investors was as high as 130 times.

After 1990, as China's Taiwan region's wages were no longer low and manufacturing costs were high, the "world factory" was pferred to mainland China.

In the same period of 20 years, the Shanghai Composite Index rose from 95 to 6124 at the peak of the stock index, giving investors a 64 fold return.

We found "

"There is a rule of pfer. When a country or region begins to become rich, wages will rise and inflation will take place." the world factory will have a handover. Once it becomes a "world factory", it will become a gold mine for wealth.

What conditions do we need to become a "world factory"?

First, the trend of young population; second, a large number of labor force and low wages; third, infrastructure must be built; fourth, politics and economy must be stable.

According to these four conditions, we can see which country can become the next "world factory".

Vietnam: Vietnam has a population of about 90 million, and its wages are low.

Emerge as a maker of Vietnam.

Vietnam's economic growth is very fast. China's proud textile industry, TMT and other bases were gradually replaced by Vietnam.

Samsung, for example, moved 40% of its production line to Vietnam, surpassing China.

Nike also moved the manufacturing center of sports shoes to Vietnam.

India:

With a population of 1 billion 250 million and an average age of less than 30, the number of young people in India (15~34 years old) surged from 353 million to 430 million in the 10 years from 2001 to 2011.

It is estimated that by 2020, the total number of young people in India will reach a peak of 464 million, and then it will drop to 458 million in 2026.

Obviously, with the increasing number of young people, the demographic dividend will greatly boost India's economic growth.

In the next 30 years, the beneficiary of the world labour market will be India.

From the perspective of labor prices, the average wage in India is only 1/5 to 1/4 of Chinese counterparts.

The rapid rise of India in recent years is also inseparable from a key figure, modi.

Since his election as Prime Minister of India, Modi has continued to increase the privatization of state-owned assets to stimulate the economy, and has substantially opened up foreign investment fields and quotas, simplifying the relevant administrative examination and approval procedures.

Following the proposal of "made in India" in September 2014, the Modi administration has thrown out at least 10 major economic and social development strategies in 2015, including the "smart city", "skills India", "digital India" plan, and new urban housing, pension insurance for residents, military retirement pension and gold savings plan, etc., and has continuously increased investment in infrastructure, encouraged technological innovation and Internet economy, and focused on the development of clean energy.

Obama wrote in April 2015 in time magazine that Modi is the chief reform officer of India.

Against this background, foreign institutions and individuals are increasingly interested in investment in India.

India's economic growth in the first half of 2016 was 7.2%, and is expected to become the fastest growing country in the world in 2016.