In the second quarter, China’s gross domestic product grew by an extraordinary 11.3%. That’s a significant speed-up from 9.9% growth in 2005, 10.1% growth in 2004 and 10% growth in 2003.

That’s a problem, because an economy can have too much growth. In China, it has led to massive overinvestment in manufacturing assets in sectors already suffering from oversupply. Investment in fixed assets — everything from steel mills to cement plants to oil refineries to highways — grew by 30% in the first half of 2006.

Since the 2002 bear market, it’s had a decent run, jumping 26% in 2003, and slowing down to a respectable 2-3% per year after.

A look at the blue chip Dow Jones industrial average…
Similar story, a bit more volatile, but still doing well at 4-5% for the last two years.

Finally, let’s look at the tech-studded NASDAQ composite index.
The most volatile out of the three broad indices, it had an amazing run in 2003, but the last year it’s tanked, has the tech sector run out of steam?

That’s just the energy income trusts, how about the S&P/TSX Capped Energy Index:
Last year’s growth was near 60%! It’s had 20%+ growth every year since 2003. It’s up 250% since it’s 2001 bottom.

Ofcourse, that’s directly correlated to the oil price…
Not to mention Natural Gas prices…

Contrary to the broad market, it seems like utilities have had a pull-back so far this year. It may be a good opportunity to get in on some high-yielding funds for the income/cashflow.