January 8th, 2010 
Vikash As you know I am constantly on the lookout for quality articles on wealth building and personal motivation, Tips and News, knowing that wealth motivation with your own motivation is now needed. Today, I ran across a really informative piece of content that discusses wealth building as well as motivation from a new perspective. Make sure you look into this piece of content and inform me what you think. Today’s piece of content is about wealth building and you could read the full article printed below for convenience:
It is an accepted fact that economies that are developing generally go through an ‘S’ curve. Growth gets faster and then slows down at around £4000 GDP per head. This stage has now been reached by China, but what makes this an incredibly thrilling time is that never previously has a country as large as China gone through the ‘S’ curve. This must be unique, surely.
The sheer magnitude and rapidity with which this is happening, coupled with an economy where things get finished must make it thus. Anthony Bolton of Fidelity in the UK estimates that China will have overtaken Japan by the end of next year to develop into the world’s second largest economy.
China is benefiting from robust long-term growth and has a strong central government, which perhaps makes it a healthier prospect than India which suffers from much more bureaucracy.
‘China is the third largest economy in the world currently but only the 10th in terms of stock market size.’ Bolton’s optimism on China is also coloured by his conviction that Western markets will continue to endure headwinds as they come out from the aftermath of the recession and credit crisis. He believes that the UK and the West is in a stage of fast economic improvement but that will slow down next year. To solve the problem of today the West has borrowed from the future.
It’s not that the western markets are in a terrible business environment but it is awfully possible that they will have slow growth and face headwinds. China can continue to expand at a somewhat high rate. Bolton has said that China was in the first year of a multi-year bull run and that it would be ‘very unusual ‘ if it was to end after just one year.
It is quite possible that most of the markets of the world will go through a re-trenchment phase next year. We are in an situation where interest rates will remain comparatively at a low level and governments will be slow to leave their support mechanisms. If they do it too quickly, they could return to recession.
However there could be more upside to come for Western stocks in the short term. This sort of environment generates liquidity thus there is more upside to come.
Bolton said the recent debt issues in Dubai might be an issue for a number of western markets, but would not have a serious impact for China because of its relative strength.
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