The Bulldog Reports: Thanks China

June 10, 2010 - PRLog -- Calgary, Alberta –PicksThatMove is pleased to bring investors special situation stocks which have a high potential for price appreciation.  These companies have interesting business models and they have to execute on the business development level to bring value to shareholders.  Some of our past picks had soared over 200%.  To view some of our profiled stocks, please visit our website at www.picksthatmove.com

Of all the large scale autocratic, free market-orientated socialist republics out there, China is by far my favourite. I’m an even bigger fan today, after our friends at Reuters reported a surge in Chinese exports. But why is the Bulldog so happy? Even when he hasn’t bankrolled a Chinese sweatshop since the early 90s? Well as a slightly melodramatic analyst put it to me today on his cigarette break “You have nothing going on in Europe and a tepid recovery in the U.S. — it’s all China or nothing.”

Yes Jimmy, this is good news coming out of China, very good news.  Bearish traders and short sellers looking for signs of Europe’s debt mess infecting the global recovery won’t find anything in this little eggroll of information. The fact China’s exports are strong means other countries are buying, and that means the economy isn’t as anaemic as pessimists thought.

But busy Chinamen doesn’t only mean American’s have their wallets out again. There’s more good news. China’s strength lies in its colossal ability to manufacture goods on the cheap. And with 1.3 billion people and a nation of relatively useless terrain, China is resource hungry like no other economy in the world. As such, the more finished goods it sells, the more commodities and energy it needs to buy. With China clearly healthier than expected, the country is primed to buy up as much oil, metal and other natural resources as they can get their sweaty little hands on. Energy, oil, mining and commodity stocks around the world soared as a result. So did the currencies of the country’s who sit on top of them.

Commodity producers and traders can breathe a sigh of relief as pressure from low demand over fears of instability in Europe, a slowing Chinese economy and disappointing employment figures in the US are alleviated. Well done China, you get a tip of my hat.

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