Posts tagged Asia

“While it is easy to point to Asia as the growth center of the world, investors should remain wary of China. While it has shown incredible GDP growth over the last decade, this is fueled by excessive credit creation. Building empty cities and manipulating currencies does not constitute real growth. In time, the piper will need to be paid,” clarified Dr. Linneman at the Global Market Outlook in New York City.

On the economy of India, Linneman said it “continues to move forward based on long-term positive demographics. However, the political climate and corruption unearthed over the past two years have made it everyone’s favorite whipping child. The government has instituted a series of reform measures intended to attract foreign capital, and put forth a recent budget focused on controlling spending, loosening entitlements, and increasing taxes, with a view toward shrinking the country’s deficit.”

“Singaporean REITs were some of the globe’s best performing stocks in 2012, a trend that should continue in 2013,” stated Dr. Linneman, “Because the Singaporean government keeps tight restrictions on real estate development, there appears to be little risk of supply outstripping demand. Demand for office and industrial space should continue, while the prices of apartments will continue their current run of consecutive annual increase.”

As recent months passed, NAI Global welcomed three new member firms in Asia and is excited to be expanding. These new members include NAI Trinitty Partners (India), NAI Malaysia and NAI Tosei Japan.