from the world's big
Should you invest in China's stock market? Know this one thing first.
Despite incredible economic growth, it is not necessarily an investor's paradise.
Weijian Shan: 10 years ago I would say that the Chinese economy didn't really matter to American consumers and to American market. But as you saw, when Apple made this announcement, then their stock dropped 10%. The broad market came down about 3%. There used to be a saying in 1980s that when America coughs, the rest of the world catches cold. And today it seems to me that when China sneezes, that the rest of the world at least coughs. So it's relevant and it's important, and therefore it's important to understand it.
I think understanding its most recent history, as I explained in my book, Out of the Gobi, will be useful. You wouldn't want to get into a market without knowing anything about it. What is the most deceiving thing about China is that growth doesn't necessarily translate into profitability. If you look at the Chinese stock market, which started around 1992-- so by now we're talking about 27 years, right? And in that 27 years, China's economy has grown-- can you guess by how much? It has grown by 30 times in nominal terms. 30 times in 27 years. If you had invested in China's stock market from very beginning, 1992, and you have held your investment for all this years, never got out, during which the economy has grown by 30 times, how much money do you think you would have made as an investor? You will have lost money, right?
People would ask why that is the case. Now there is not a strong correlation between the stock market and economic performance at any given moment. However, over a long period of time, let's say 20 years, in every country there is positive correlation between economic growth and stock market performance. And China is a single exception.
You know, I've heard some investors telling me-- we're in the investment business. We are in private equity business, so we have many investors who trust us with their money to invest in Asia, particularly in China. They say well, China now is second largest economy in the world, America is the largest, and I allocate 40% of my capital to America, I should allocate at least 30% to China just by the sheer size of the economy. And I would tell them a story about how China has grown the past 20 some years and how the stock market would actually give them a negative return. And then you look into the question-- why that is the case? It has to do with China's economic growth model driven so much by investments. And therefore, yes, earnings have been growing in aggregate in China. But the capital base with which you produce the earnings has been growing even faster, because China has invested so much and therefore ROE, or return on capital, may be falling.
If you don't understand it, if you invest just in economic growth, you will understand that there is a bad economy with a lot of overcapacity, and there is a good economy which is actually growing, then you're bound to make mistakes.
- China's stock market is just 27 years old. It's economy has grown 30x over that time.
- Imagine if you had invested early and gotten in on the ground floor.
- Actually, you would have lost money. Here's how that's possible.
Join multiple Tony and Emmy Award-winning actress Judith Light live on Big Think at 2 pm ET on Monday.
Frequent shopping for single items adds to our carbon footprint.
- A new study shows e-commerce sites like Amazon leave larger greenhouse gas footprints than retail stores.
- Ordering online from retail stores has an even smaller footprint than going to the store yourself.
- Greening efforts by major e-commerce sites won't curb wasteful consumer habits. Consolidating online orders can make a difference.
A pile of recycled cardboard sits on the ground at Recology's Recycle Central on January 4, 2018 in San Francisco, California.
Photo by Justin Sullivan/Getty Images<p>A large part of the reason is speed. In a competitive market, pure players use the equation, <em>speed + convenience</em>, to drive adoption. This is especially relevant to the "last mile" GHG footprint: the distance between the distribution center and the consumer.</p><p>Interestingly, the smallest GHG footprint occurs when you order directly from a physical store—even smaller than going there yourself. Pure players, such as Amazon, are the greatest offenders. Variables like geographic location matter; the team looked at shopping in the UK, the US, China, and the Netherlands. </p><p>Sadegh Shahmohammadi, a PhD student at the Netherlands' Radboud University and corresponding author of the paper, <a href="https://www.cnn.com/2020/02/26/tech/greenhouse-gas-emissions-retail/index.html" target="_blank">says</a> the above "pattern holds true in countries where people mostly drive. It really depends on the country and consumer behavior there."</p><p>The researchers write that this year-and-a-half long study pushes back on previous research that claims online shopping to be better in terms of GHG footprints.</p><p style="margin-left: 20px;">"They have, however, compared the GHG emissions per shopping event and did not consider the link between the retail channels and the basket size, which leads to a different conclusion than that of the current study."</p><p>Online retail is where convenience trumps environment: people tend to order one item at a time when shopping on pure player sites, whereas they stock up on multiple items when visiting a store. Consumers will sometimes order a number of separate items over the course of a week rather than making one trip to purchase everything they need. </p><p>While greening efforts by online retailers are important, until a shift in consumer attitude changes, the current carbon footprint will be a hard obstacle to overcome. Amazon is trying to have it both ways—carbon-free and convenience addicted—and the math isn't adding up. If you need to order things, do it online, but try to consolidate your purchases as much as possible.</p><p>--</p><p><em>Stay in touch with Derek on <a href="http://www.twitter.com/derekberes" target="_blank">Twitter</a>, <a href="https://www.facebook.com/DerekBeresdotcom" target="_blank">Facebook</a> and <a href="https://derekberes.substack.com/" target="_blank">Substack</a>. His next book is</em> "<em>Hero's Dose: The Case For Psychedelics in Ritual and Therapy."</em></p>
Building a personal connection with students can counteract some negative side effects of remote learning.
- Not being able to engage with students in-person due to the pandemic has presented several new challenges for educators, both technical and social. Digital tools have changed the way we all think about learning, but George Couros argues that more needs to be done to make up for what has been lost during "emergency remote teaching."
- One interesting way he has seen to bridge that gap and strengthen teacher-student and student-student relationships is through an event called Identity Day. Giving students the opportunity to share something they are passionate about makes them feel more connected and gets them involved in their education.
- "My hope is that we take these skills and these abilities we're developing through this process and we actually become so much better for our kids when we get back to our face-to-face setting," Couros says. He adds that while no one can predict the future, we can all do our part to adapt to it.
Construction of the $500 billion dollar tech city-state of the future is moving ahead.
- The futuristic megacity Neom is being built in Saudi Arabia.
- The city will be fully automated, leading in health, education and quality of life.
- It will feature an artificial moon, cloud seeding, robotic gladiators and flying taxis.
The Red Sea area where Neom will be built:
Saudi Arabia Plans Futuristic City, "Neom" (Full Promotional Video)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="c646d528d230c1bf66c75422bc4ccf6f"><iframe type="lazy-iframe" data-runner-src="https://www.youtube.com/embed/N53DzL3_BHA?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span>
Chronic irregular sleep in children was associated with psychotic experiences in adolescence, according to a recent study out of the University of Birmingham's School of Psychology.