Goldman Sachs: Investment Road to 2030

Out today: Goldman Sachs Says Funds Will Go East for Next Two Decades

By Hanny Wan
     Dec. 2 (Bloomberg) -- Goldman Sachs Group Inc. forecast
fund flows shifting from the developed world in the next two
decades would fuel a stock rally in developing markets, with
China being the key beneficiary.
     Those flows will offset any negative impact on China’s
markets from tighter policies aimed at preventing an asset
bubble, said Thomas Deng, Goldman Sachs’ head of China strategy.
Earnings growth in China, estimated at between 20 percent and 30
percent on average next year, will propel the equity market
rally, said Deng. He recommended buying shares in China’s auto
and healthcare industries, and companies with large land
reserves in Shanghai.
     “Western countries’ money is moving to oriental countries,
and that means developed world money is flowing into developing
countries,” Deng said at a media briefing in Hong Kong today.
“This will be a trend in the next 10 to 20 years.”

     Developing economies will expand 5.1 percent in 2010
compared with 1.3 percent growth in advanced nations, according
to the International Monetary Fund. Asia excluding-Japan equity
funds posted net inflows of $975 million in the week ended Nov.
25, bringing the total for the year to $18 billion, EPFR Global
said yesterday. Flows into China equity funds reached a year-to-
date high of $827 million, according to EPFR, which tracks funds
holding $10 trillion worldwide.
     Goldman Sachs forecast Hong Kong’s Hang Seng China
Enterprises Index will reach 17,000 and China’s CSI 300 Index
will hit 4,300 by the end of 2010, Deng said. Hong Kong’s Hang
Seng Index will climb to about 27,000 next year, Timothy Moe, an
analyst at the brokerage, said at the same media briefing.

Hang Seng 22K today... 27K next year according to Goldman - who tend to call these things better than most. I don't see why not. I would suggest trying to buy some Chinese stocks on any weakness between now and year end. Next year: we're going higher I think. 2010-2030 is the trade here... all aboard... then be patient.

Goldman mention China's auto industry as in flavour in above article... we discussed this a few weeks ago on here: Geely. 175 HK is the pick of the bunch I think. You saw it first HERE on tanglerlive

Went to a talk given by a leading 'Futurist' yesterday, he said much the same thing! 

   cool. good to know!

another headline out today... *EMERGING-MARKET STOCKS MAY RISE 34% BY END-2010, JPMORGAN SAYS

interesting article and one worth keeping an eye on...   id be wary of monetary tightening bubbles along the road,  but i think long term these will provide very useful dips to buy on...    HSI id be surprised (barring any major correction) if it didnt hit 30,000 again next year...   its a gambling nation (administrative region!!)...  just cant help it!!