Thursday, April 16, 2009

China’s Economy Grows 6.1%, Inflation next?


China’s economy grew 6.1% in the first quarter, that is the good news. The bad news? The Chinese economy grew at the slowest pace in almost a decade. We can only wish.

The important news is that China's industrial production grew 8.3% during March up from 3.8 percent in the first two months. Retail sales rose 14.7%.

The real news here is that commodity prices are going to start rising due to Chinese demand. We already showed the effect, two days ago, on Chinese demand for copper and how it is causing the price of copper to rise sharply.

I continue to encourage investors to get into stocks that will benefit from rising inflation. We will discuss more of these in the days ahead.

I have mentioned the ETF, MOO, several times on this website in the past. This is a good example of a stock that benefits from inflation. We will also be discussing Freeport McMoran (FCX), which we mentioned a few days ago.

We will be discussing good inflation stocks in the days ahead, so remember to stay tune in for those ideas.
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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.


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