HAMDEN, Conn., April 5, 2013 (GLOBE NEWSWIRE) -- China's emerging middle class—which could be four times bigger than that of the U.S. in a generation—presents an opportunity for investors, though not necessarily in Chinese companies. Iconic U.S. brands such as Starbucks and Tiffany & Company could see huge growth in the Chinese market, said Jeffrey Kleintop, the chief market strategist at LPL Financial.
China presents both risks and opportunities, as do many of the foreign investments explored by the "Global Markets" panel on April 4, the first day of the Quinnipiac University third annual Global Asset Management Education (G.A.M.E.) III Forum at the Hilton Hotel Midtown.
Abby Joseph Cohen, senior investment strategist and president of Goldman Sachs Global Markets Institute, noted that the failure rate of new stock issues in China is four times higher than in the United States, a fact she attributed to much stronger risk and compliance policies and accounting principle adherence in the U.S.
Higher confidence levels have also led, Cohen said, to greater direct foreign investment in the U.S. economy, compared to other nations with less compliance and transparency. "There had been a high level of direct investment in China, but the bloom is off that particular rose," she said.
Bob McCooey, Jr., senior vice president of new listings and capital markets at NASDAQ OMX Group, Inc., agreed that money flows into the American economy "because the liquidity in the U.S. is better. Investors want to invest here because they know what our standards are—and that's the only way to attract capital."
Several panelists expressed concern about ongoing financial crises in Europe.
Guy Adami, managing director at Drakon Capital and a regular contributor to "Fast Money" on CNBC, pointed to worrying trends in the Cyprus situation, not for the size of the potential bank failure but for Cyprus' willingness to put depositors' money at risk. "Saying 'We're willing to tax people who have money in our banks,' that's somewhat dangerous," he said. "The precedent could be big."
Similarly disturbing, some panelists said, is an Indian Supreme Court ruling denying an Indian patent for a cancer drug developed by the Swiss pharmaceutical company Novartis. Cohen said that such developments are "a long-term problem for global economic growth," pitting countries with a tradition of investing in research and development against those that lack respect for intellectual property.
Nonetheless, all the panelists see great opportunity in foreign investment, with Kleintop citing Indonesia and Malaysia as having particularly strong potential. South Korea was also cited, but McCooey said that the Middle East presents "too much volatility.'
The forum, founded by David Sauer, a finance professor in the School of Business at Quinnipiac, attracted 1,000 student participants from 44 states and 33 countries, representing 118 universities to hear 120 speakers over two and a half days. Quinnipiac students helped organize the event, and take part in extensive Q&A sessions with the speakers.
Quinnipiac is a private, coeducational, nonsectarian institution located 90 minutes north of New York City and two hours from Boston. The university enrolls 6,200 full-time undergraduate and 2,300 graduate students in 58 undergraduate and more than 20 graduate programs of study in its School of Business and Engineering, School of Communications, School of Education, School of Health Sciences, School of Law, Frank H. Netter MD School of Medicine, School of Nursing and College of Arts and Sciences. Quinnipiac consistently ranks among the top regional universities in the North in U.S. News & World Report's America's Best Colleges issue. The 2013 issue of U.S. News & World Report's America's Best Colleges named Quinnipiac as the top up-and-coming school with master's programs in the Northern Region. Quinnipiac also is recognized in Princeton Review's "The Best 377 Colleges." For more information, please visit www.quinnipiac.edu. Connect with Quinnipiac on Facebook at www.facebook.com/quinnipiacuniversity and follow Quinnipiac on Twitter @QuinnipiacU.
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