{"id":45363,"date":"2022-06-22T20:56:04","date_gmt":"2022-06-22T20:56:04","guid":{"rendered":"https:\/\/adamfayed.com\/?p=45363"},"modified":"2024-02-23T05:33:54","modified_gmt":"2024-02-23T05:33:54","slug":"why-are-chinese-stock-etfs-not-outpacing-american-ones-when-chinas-gdp-has-been-growing-faster-than-the-us-for-years-when-will-chinas-growth-be-reflected-in-its-stock-market","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/es\/investment-options\/why-are-chinese-stock-etfs-not-outpacing-american-ones-when-chinas-gdp-has-been-growing-faster-than-the-us-for-years-when-will-chinas-growth-be-reflected-in-its-stock-market\/","title":{"rendered":"Why are Chinese stock ETFs not outpacing American ones when China&#8217;s GDP has been growing faster than the US for years? When will China&#8217;s growth be reflected in its stock market?"},"content":{"rendered":"<p>Escribo a menudo en Quora.com, donde soy el escritor m\u00e1s visto sobre temas financieros, con m\u00e1s de 422,4 millones de visitas en los \u00faltimos a\u00f1os.<\/p>\n\n\n\n<p><strong>En las respuestas que figuran a continuaci\u00f3n me he centrado en los siguientes temas y cuestiones<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Why are Chinese stock ETFs not outpacing American ones when China&#8217;s GDP has been growing faster than the US for years? When will China&#8217;s growth be reflected in its stock market?<\/li>\n\n\n\n<li>Do billionaires take loans?<\/li>\n<\/ul>\n\n\n\n<p>Si quieres que responda a alguna pregunta en Quora o YouTube, o est\u00e1s buscando invertir, no dudes en<a href=\"https:\/\/adamfayed.com\/es\/#contact-me\">&nbsp;p\u00f3ngase en contacto conmigo<\/a>, correo electr\u00f3nico (advice@adamfayed.com) o utiliza la funci\u00f3n de WhatsApp que aparece a continuaci\u00f3n.<\/p>\n\n\n\n<p>Es posible que algunos de los enlaces y v\u00eddeos a los que se hace referencia s\u00f3lo est\u00e9n disponibles en las respuestas originales.&nbsp;<\/p>\n\n\n\n<p>Fuente de todas las respuestas: p\u00e1gina Quora de Adam Fayed.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why are Chinese stock ETFs not outpacing American ones when China&#8217;s GDP has been growing faster than the US for years? When will China&#8217;s growth be reflected in its stock market?<\/h2>\n\n\n\n<p>There are a few things to consider here. Firstly, here is a question for you.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"512\" height=\"512\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_chinese_stock_market_with_screen_of_stock_78e17718-8121-4ae6-9053-aef37c51cbf6-512x512.png\" alt=\"\" class=\"wp-image-68835\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_chinese_stock_market_with_screen_of_stock_78e17718-8121-4ae6-9053-aef37c51cbf6-512x512.png 512w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_chinese_stock_market_with_screen_of_stock_78e17718-8121-4ae6-9053-aef37c51cbf6-300x300.png 300w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_chinese_stock_market_with_screen_of_stock_78e17718-8121-4ae6-9053-aef37c51cbf6-150x150.png 150w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_chinese_stock_market_with_screen_of_stock_78e17718-8121-4ae6-9053-aef37c51cbf6-81x81.png 81w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_chinese_stock_market_with_screen_of_stock_78e17718-8121-4ae6-9053-aef37c51cbf6.png 573w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>When was the only calendar year when the S&amp;P500 has been down since the Great Depression of 2008 &#8211; adjusted for reinvesting dividends?<\/p>\n\n\n\n<p><strong>The answer is 2018 when the market fell&nbsp;<\/strong>-6.24% for the year, meaning you would have been down about 4% or so if you had reinvested dividends.<\/p>\n\n\n\n<p>What was the second-best year, in terms of US GDP growth, between 2008 and 2020?<\/p>\n\n\n\n<p>You guessed it! 2018. The economy grew by 3%, whereas the S&amp;P500 fell by -6%.<\/p>\n\n\n\n<p>In 2013, the S&amp;P500 rose by 29.60%, but GDP growth was 1.8%.<\/p>\n\n\n\n<p>There has never been a clear correlation between stock market growth and the economy, and vice versa.<\/p>\n\n\n\n<p>Even if there was a connection, in a global world, world GDP would matter more. Apple sells more stuff outside the US than inside, and some international Chinese firms also have a huge global presence.<\/p>\n\n\n\n<p>Now coming to China, the connection between GDP growth and stocks is even less clear.<\/p>\n\n\n\n<p>Indeed, the stock market in Shanghai did very well between 2000 and 2006, as shown by the graph below.<\/p>\n\n\n\n<p>These were also six of the best growth years ever for the country.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-baa14d4f0cc9649e84c14757e99a1419-lq\" alt=\"\"><\/figure>\n\n\n\n<p>Yet the stock market crashed in 2006, and the economy grew more in 2007 than at any time since the upcoming up in 1978.<\/p>\n\n\n\n<p><strong>The issue with the Chinese stock market is:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>It can always be controlled by the government, and this risk is bigger than for most other countries<\/li>\n\n\n\n<li>There are fewer institutional investors versus markets in the US and even Europe, which means that retail investors play a bigger role. Retail investors can be more emotional. This is why you see these huge swings in the market like in 2015 when the stock market rose and fell fast.<\/li>\n\n\n\n<li>There isn\u2019t a big appetite from either Chinese retail investors, or most international investors, to own Chinese stocks, especially as many Chinese firms IPO internationally.<\/li>\n<\/ul>\n\n\n\n<p>Every dog has its day in investing, and the Shanghai Composite will probably have its day again.<\/p>\n\n\n\n<p>It will be ironic if that day comes once China\u2019s growth lags behind the US and some other economies, which could even happen this year as per this analysis:<\/p>\n\n\n\n<p>The cheapness in some of the valuations will be one of the drivers, rather than GDP numbers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Do billionaires take loans?<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"512\" height=\"512\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_a_photo_of_wealth_business_woman_has_a_meeting_wit_a80761cb-33ef-4cfe-aefb-5ecd5d06b2f1-512x512.png\" alt=\"\" class=\"wp-image-68833\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_a_photo_of_wealth_business_woman_has_a_meeting_wit_a80761cb-33ef-4cfe-aefb-5ecd5d06b2f1-512x512.png 512w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_a_photo_of_wealth_business_woman_has_a_meeting_wit_a80761cb-33ef-4cfe-aefb-5ecd5d06b2f1-300x300.png 300w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_a_photo_of_wealth_business_woman_has_a_meeting_wit_a80761cb-33ef-4cfe-aefb-5ecd5d06b2f1-150x150.png 150w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_a_photo_of_wealth_business_woman_has_a_meeting_wit_a80761cb-33ef-4cfe-aefb-5ecd5d06b2f1-81x81.png 81w, https:\/\/adamfayed.com\/wp-content\/uploads\/2023\/10\/whitephoenix_a_photo_of_wealth_business_woman_has_a_meeting_wit_a80761cb-33ef-4cfe-aefb-5ecd5d06b2f1.png 573w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Yes, billionaires take loans just as many other people do.<\/p>\n\n\n\n<p><a class=\"wpil_keyword_link\" href=\"https:\/\/adamfayed.com\/es\/why-does-elon-musk-always-tweet-controversial-statements-though-its-hitting-his-and-teslas-credibility\/\" title=\"Elon Musk\" data-wpil-keyword-link=\"linked\">Elon Musk<\/a> has just taken a loan to buy Twitter.<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/qph.cf2.quoracdn.net\/main-qimg-f307707572ae6d31226a39c00fa28a85-lq\" alt=\"\"><\/figure>\n\n\n\n<p>It is more likely to be called \u201cleverage\u201d by the media.<\/p>\n\n\n\n<p>The only difference is that most billionaires earn more from asset appreciation, rather than salary.<\/p>\n\n\n\n<p>This allows them to borrow against their stock, as Elon Musk and others have done, which has caused controversy.<\/p>\n\n\n\n<p>It can reduce taxes, in the short term at least, and maximize gains.<\/p>\n\n\n\n<p>This article explains it well. <\/p>\n\n\n\n<p>Two investors both make $20m from selling their business.<\/p>\n\n\n\n<p>They both get identical returns, but investor two borrows $5m, against their portfolio.<\/p>\n\n\n\n<p>After ten years, the first investor has $34.8m and the second $37.3m.<\/p>\n\n\n\n<p>It is for the same reason why buying property on leverage (mortgage) works for the average investor &#8211; IF the property market is doing well.<\/p>\n\n\n\n<p>This leads me to another thing. Debt\/leverage isn\u2019t a free lunch. It increases risk. I have met several wealthy people who got over-leveraged.<\/p>\n\n\n\n<p>During 2007-2008, many saw their net worth go to zero, as they borrowed too much for housing and businesses.<\/p>\n\n\n\n<p>What is more, there is a big correlation between a lack of debt and emotional well-being. Debt can be stressful for people &#8211; wealthy and non-wealthy alike.<\/p>\n\n\n\n<p>So, sometimes it makes sense to not only focus on what is best financially but also for your well-being.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>\u00bfLe duele la indecisi\u00f3n financiera? \u00bfQuiere invertir con Adam?<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"1024\" height=\"604\" src=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-2.png\" alt=\"\" class=\"wp-image-41190\" srcset=\"https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-2.png 1024w, https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-2-300x177.png 300w, https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-2-768x453.png 768w, https:\/\/adamfayed.com\/wp-content\/uploads\/2022\/04\/smile-beige-jacket-4-1024x604-2-81x48.png 81w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/become-adams-client\/\">Convi\u00e9rtase en mi cliente<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/good-match-quiz\/\" target=\"_blank\" rel=\"noreferrer noopener\">Realice el cuestionario de elegibilidad de clientes<\/a><\/div>\n\n\n\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/adamfayed.com\/es\/contact\/\" target=\"_blank\" rel=\"noreferrer noopener\">P\u00f3ngase en contacto con<\/a><\/div>\n<\/div>\n\n\n\n<p><strong>Adam es un autor reconocido internacionalmente en temas financieros, con m\u00e1s de 830 millones de respuestas en Quora, un libro muy vendido en Amazon y colaborador de Forbes.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Why are Chinese stock ETFs not outpacing American ones when China&#8217;s GDP has been growing faster than the US for years? When will China&#8217;s growth be reflected in its stock market?<\/p>","protected":false},"author":1,"featured_media":45364,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[11798],"tags":[],"class_list":["post-45363","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investment-options"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/45363","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/comments?post=45363"}],"version-history":[{"count":1,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/45363\/revisions"}],"predecessor-version":[{"id":80879,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/posts\/45363\/revisions\/80879"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media\/45364"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/media?parent=45363"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/categories?post=45363"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/es\/wp-json\/wp\/v2\/tags?post=45363"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}