Three trends to watch for global investors

Trend is your friend: It is the fourth month in a row where the PMI landed above the three-month PMI, and shows the economy is on the right path Bloomberg announced over the weekend that China's manufacturing grew at the fastest pace in a year. We follow the government's Purchasing Managers' Index (

) closely, as we believe it is a better indicator of China's domestic demand than the HSBC PMI. Whereas HSBC PMI surveys 400 small and mid-sized companies, which are typically export-oriented, the government's PMI surveys 820 mostly large, state-owned enterprises across 20 industries. Though manufacturing activity exceeded analysts' estimates, some China bears focused on the fact that the March 2012 number is lower than the average during the third month from 2005 through 2011. What's important for investors to consider is that the trend is your friend: It is the fourth month in a row where the PMI landed above the three-month PMI, and shows the economy is on the right path. Below are three additional constructive trends we see in China. Continue reading this article

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