Recently, while reading Hong Chun-wook’s Economic Topics , I explored the structural weakness of China's economy. The author presented a negative outlook on Chinese investments, citing demographic shifts and the urban-rural divide. Book Review Link However, I see it differently. The FXI, a prominent Chinese large-cap ETF, has risen by about 40% this year , and global giants like Tencent, Alibaba, and Xiaomi continue their steady growth despite U.S.-China trade tensions and economic slowdowns. These companies hold significant global influence, and avoiding Chinese stocks solely due to market concerns may not be a prudent choice. Hence, I believe that instead of outright avoiding Chinese stocks, investors should focus on valuation to identify opportunities . China vs. U.S.: Valuation Comparison A key metric for stock market valuation is the P/E ratio (price-to-earnings ratio) , which represents how much investors are willing to pay per unit of corporate earnings. A higher P/...
This book provides clear and accessible explanations of economic and international political issues that many people have wondered about at least once. Why is China facing deflation? Why do Israel and Iran engage in continuous conflict? Why do Brazilian bonds maintain high interest rates? Through these questions, the book delivers key insights into international economics and investment strategies , helping readers understand the global economic landscape . A New Economic Paradigm The book explains that the 21st century operates under a different economic paradigm compared to the 20th century. Since the 2008 global financial crisis , the world has entered an era of low growth and low inflation , leading to a surge in anti-immigration and anti-globalization sentiments . Economic stagnation made it harder for people to maintain their livelihoods, while an influx of low-wage immigrant workers increased competition for jobs and exacerbated security concerns in some regio...