[/caption]With interest rates in the Americas and Europe anchored to the lowest in decades, and the Federal Reserve foreseeing no significant rate hike on the horizon, seems to be evidence that our growth here in the two nations will be tepid, to say the least.
The Asia/ Pacific rim has no such worries. The New York Times is reporting that there is envied growth in that part of the world, so much so that banks in South Korea are scheduling interest rate hikes.
This normalization of rates, due to the humming of the Asia/Pacific rim economies, evinced that these particular countries could afford to raise rates because their people can maintain the payments without undue hardship.
Along with rate hikes in South Korea, there have been hikes in Malaysia and India - we can further surmised that If there are interest rate hikes, spurred because of sustained growth, then the equities in said countries might be ripe to invest in.
Economic growth is spurred by hiring, and verse versa, and if these corporations in these Asia/Pacific rim are growing and producing, then their stocks might be attractive to invest in.
The respective country’s corporate bonds might be attractive too because sustained growth means again that they can afford to meet their debt obligations. To support my premise about investing in these Asia/Pacific countries’ equities, the International Monetary Fund is projecting a robust 9% growth in the Asia/Pacific, as opposed to the 3.3% respectively for America and all of Europe.
The Europeans and Americans wished they had such growth now on their respective economic horizons, like what is projected for the Asia/Pacific rim countries.
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