Earlier this month, China lowered its interest rate 0.25 percentage points, indicating an economic slump. As Louis Basenese said at the time, “From construction activity to electricity output and fixed investment to exports, China’s definitely experiencing a slowdown.” (Then again, Louis has been warning Wall Street Daily readers that this was coming for the last 10 months.)
And now that its factory sector has contracted again for the eighth consecutive month, and export orders are at a three-year low, the outlook seems bleaker than ever, right?
Not so, according to Executive Chairman of Templeton Emerging Markets Group, Mark Mobius: “I don’t see it at all because if a country is growing at 6%, 7%, 8%, they’re not landing. They’re continuing to fly. So the government has targeted 7.5% growth this year. We’re looking at 8%.”
Mobius is so bullish on China’s outlook that he’s planning on pouring a billion dollars into the economy over the next two or three years.