China Growth Slows to 7.5% 2013 Target Under Threat

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July 15 (Bloomberg) -- China’s economy slowed for a second quarter as growth in factory output and fixed-asset investment weakened, adding to risks that the government will miss its expansion target as Premier Li Keqiang reins in a credit boom. Capital Innovations Co-Founder and CIO Michael Underhill speaks with Deirdre Bolton on Bloomberg Television's "Money Moves." (Source: Bloomberg)

If the average investor does want to make it that, put some money to work on infrastructure in china, what is the best way to do it yet -- do it?

It is such a challenge and opportunity.

You have erect investment -- you have direct investment.

A company likegsh -- a company like gsh -- you look at chinese new year, roughly 76 million people wrote the railroads --rode the r -- rode the railroads in china.

What about here in the united states?

Lex we have publicly traded stocks.

You have not only transportation but energy.

When you look at energy dependency in the united states and the ability to invest in energy infrastructure it is phenomenal and exciting.

You see master them and attend partnerships -- master limited partnerships.

They had $30 billion of equity that was issued.

Mutual funds, exchange traded funds, institutional investors are spending were times in the partnerships.

We are on track to do 34 billion dollars, more than a 10% growth.

You mentioned some of the energy opportunities.

Are there one or two that are sticking out in your mind?

When you can get some flexibility , having a dominance, names like -- great name, core capital growth.

The yield is tied to that insulation -- two that inflation.

When you look at a world where people are trying to postulate what is better, or by rail or by pipeline -- oil by rail or pipeline, they purchased stations and facilities so they can actually participate in the dynamics.

You have seen oil by rail car increase by 67%. it is a great play for the individual investor.

I know you are looking at infrastructure.

Also agriculture, feeding the world, what kinds of opportunities are you looking for in that context?

We look at things like essential services.

Fuel is the infrastructure.

If you look at things like food and agriculture, population demographics and growth, not only in emerging markets but in shifting dietary patterns -- the growing middle class, many people want to eat meat.

That has been a shift in a lot of places.


It is not just china, india, or brazil.

If you look at the consumption patterns, protein output has increased by 75%. the best way to increase crop yields by 75% growth metrics you need are delighted, potash and nitrogen-based fertilizers.

You look at free cash flow, you look at the ability to address some of the issues.

This year we are having record cold and record wet weather.

We are seeing the heat in new york and elsewhere in the united states.

Analyzer is the single best way to increase crop yield.

You mentioned feeding the world and obviously we are on a national team.

What about housing?

We are talking about bigger picture view on the u.s. housing recovery?

How do you invest for it?

When you see companies out there, friends like steve schwarzman of lack stone -- he is the biggest landlord.

They are one of two or three by the equity that you have 115 million residential homes.

We are trending toward one million plus in housing starts.

The remodeling market, existing home sales, those prices are up.

This portends a broader-based economic recovery.

Not only a monetary company that companies that are benefiting from it.

They are playing on the house and growth with lumber, timber, and other products.

They are shipping to china and japan.

Japan is that stimulated economy.

They are consuming wood products and creating a wealth effect.

It is pretty hard to invest directly in timber.

You are giving us a way to do it through public stock.

Otherwise it is pretty hard to pull off.

When you look at it it is the liquidity.

Are you willing to take the liquidity risk?

Jan that are you willing to take a concentration risk?

You are concentrated by specie, by geography -- by specie i mean spruce, pine, eucalyptus -- it is very well diversified as opposed to a single equity play.

Lex always glad to see you.

We are happy for the ideas.

Michael underhill joining us there.

This text has been automatically generated. It may not be 100% accurate.


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