When you think of the world’s biggest economies , which countries do you think of? For thousands of years the answer was India and China.About  2000 years ago, India made up of 33% of the world’s economy, China had the 26% or combined 59% of the world’s economy was China and India. 2000 years was the time of Christ, yet most Europeans never thought of the world in that fashion – they likely thought the world revolved around Rome. Now 2000 years later those two countries are regaining their lost status, what should you do? In the book Growling Tiger Roaring Dragon by David Smith published by Douglas & McIntyre, Vancouver, 2007 the author offers ideas. Now the countries are back what do you do?

For many reasons, the countries of China and India with continue to grow, although the grow rates will slow, they will continue to dominate the world’s economy. Both countries have populations that are over one billion and given their growth there is a growing middle class which will change the countries to more service in jobs. In many countries resources or commodities will have great impact on the countries budgets, the growth of China and India has increased the price of commodities which is one of those good bad things. Good for companies in the industry, bad for the individual prices tend to go up, but we are talking about the overall country and good wins out. As the economy grows, China and India have a greater presence on diplomatic matters.

Linking to dividend paying stocks, if you shop at Wal-mart or one its subsidiaries and 80% of US citizens visit the store at least once a year – the biggest customer of China is Wal-mart. This means the North American economy is tied to China, just as it is tied to Europe. As both China and India develop their economies they will be and still are opportunities for making money from your investments. The same process which is used to pick stocks it means being selective, understanding how the economy works and start your homework there. In China there is a mixture of state and privately owned companies; in India there are a number of family owned companies which have the greatest influence.

There are more questions than answers, till the next time – to raising questions.