Looking At China And Strong Emerging Markets For Pioneers
Robert Holderith, Emerging Global Advisors founder and president, talked China and some of his hot picks for merging markets on Wednesday's Squawk Box.
He said that China is looking for a more domestic-demand-based economy, and less of an export-demand-based economy, citing that the Chinese pay three times more for a General Motors (NYSE: GM) Cadillac, when they could buy a car made locally in China for much cheaper opposed to importing.
Holderith also noted that the Chinese aren't spending as much, but that growth is still better than most developed markets at 7 percent.
"It means that wage growth is not going to be what it was with 10 percent [GDP] growth," said Holderith.
The consumer movement in China is huge. According to Holderith, consumers are not to be underestimated, saying that they have kept both the European and United States economies afloat.
As far as emerging markets for pioneering spirits...
"We like Mexico, South Africa, Indonesia, Thailand, Malaysia, the Philippines, Columbia, Chile, those countries, we think they have a better opportunity to grow," said Holderith.
Emerging economies that provide a larger frontier really have the potential to grow lerger, outshining the "bricks in the last year or two," Holderith said.
At the time of this writing, Jason Cunningham had no position with the mentioned entities. Visit Jason on Twitter @JasonCunningham.
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