Trading Partners

Don’t look now, but global trade is accelerating.

In the first quarter, the volume of goods imported and exported surpassed the high previously recorded in early 2008. Trading volume continues to increase, especially exports from emerging Asia to the rest of the world. Japanese trade fell, even before the earthquake-tsunami-nuclear disasters. In the US, imports rose and exports fell, which will drag on first quarter GDP. Nevertheless, economic activity is strengthening around the world, and what goes around comes around.

Industrial production seems to be picking up as well, expanding everywhere. Again, emerging Asia leads the pack, with production up 5.5% quarter-over-quarter. China and India continue to expand their production base in order to meet the rest of the world’s demand. Global industrial production continues to hit new highs. The biggest problem that manufactured exports create is too many dollars for investment. We all should have such problems!

The gloom crew is missing this. Without any fanfare China Mobil, Mittal Steel, Tata Motors, and Taiwan Semiconductor are capitalizing on the global recovery. Their plants are efficient, their trading partners well-capitalized, and their markets are growing. As long as trade and profits continue to grow, the world’s economy will continue to recover.

Douglas R. Tengdin, CFA
Chief Investment Officer
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By | 2014-09-11T13:33:48+00:00 April 24th, 2014|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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