Dear Fellow Investor,
Happy New Year! I hope you had a pleasant holiday on Tuesday. I wish you and your loved ones health and prosperity in 2008.
Right now we are in the thick of the busiest time of the year for shopping malls here in America as consumers rush to take advantage of post-holiday sales. Spending is also strong in China right now, where shopping centers have been getting busier with each passing month.
This is one of the many reasons why I believe that 2008 will be a great year for Chinese consumer stocks. Chinese shoppers finally have the means to improve their lifestyle, and once they get a taste of life's luxuries, there will be no turning back. So, while we're still in the first week of the new year, I'd like to stand up and say that my main prediction for investment trends in 2008 is that China's 1.3 billion consumers, led by Chuppies (a term that I coined for young Chinese urban professionals), will take center stage and cause Chinese domestic consumption to grow 12% in 2008.
The Year of the Chuppies
Since the time of Christopher Columbus, European and American businesses have fantasized about the vast purchasing power of the world's most populous country. Far-flung trips, including Lewis and Clark's famous expedition to the Pacific Northwest, were organized to find better access to the fabled Chinese consumer market.
We're just now beginning to see the awesome strength of China's purchasing power. Chinese consumer spending has grown steadily at a rate of more than 10% per year during the past seven years. But 2008 will probably be the year when Chinese consumers really start to spend.
| Profit from China's Consumer Boom |
| China Strategy members have been riding the consumer spending trend since 2006 and are going to continue profiting in 2008. Let's take a look at how the four consumer stocks I'm recommending have already done for China Strategy members so far:
And I believe these stocks have even more upside potential! Become a member of China Strategy today and you'll not only get the names of the four consumer-based companies you should buy now, but you'll also get weekly updates on when to buy more, when to sell and which other companies are profiting from the China Miracle! |
A lot of this spending will be done by Chuppies. Last year in my China Strategy service, I talked about Chuppies as the next major demographic group to drive global consumption. After all, someone has to pick up the spending slack as U.S. Baby Boomers enter retirement. In 2008, the oldest Baby Boomers will turn 62, and many will start retiring. But there are more than 75 million Chinese in Chuppie and other middle-class households with the means and desire to live the "good life." They will gladly pick up where the Baby Boomers leave off.
There are two catalysts that will make 2008 the Year of the Chuppies. The first is the development of credit card businesses and other forms of consumer banking in China. China Strategy'sShanghai-based consumer trends analyst Frances went from having only one credit card in 2006 to having four credit cards today. Currently, only 5% of the money that Chinese consumers spend is on credit. By comparison, 60% of the money American consumers spend is on credit, including credit card debts, mortgages, student loans and other types of loans.
The second catalyst that will drive Chinese consumer spending is the wealth effect of China's rapid stock and real estate appreciation. Chinese real estate prices more than doubled over the past five years and the stock market more than tripled during the same period. In 2007, property prices jumped yet again and Mainland A-Share stock prices shot up a whopping 90%. As a result, millions of Chuppies have seen their personal net worth increase sharply over the past couple of years. This increase in wealth will translate into more purchases.
Do you want to know which consumer stocks will benefit the most in The Year of the Chuppie? Click here to get the names and buy advice for plays that will profit from China's consumer spending boom. Don't miss out on China's tremendous purchasing power!
Four Opportunities to Profit
As America opens up to more Chinese tourists in 2008, I expect to see more Chinese shoppers in places like Beverly Hill's Rodeo Drive and New York's Fifth Avenue. Smart retailers who understand Chinese consumers will make lots of money. This new wave of traveling and Chinese shoppers will directly benefit a number of companies that I'm currently recommending in China Strategy.
Anyone who wants to take advantage of this incredible consumer trend should own four specific companies that are best-positioned to benefit:
The first is my online travel company that Chinese citizens will look to for all of their travel booking needs. The second and third companies are actually U.S.-based, but have become highly desirable by Chinese looking to spend their money in uniquely American ways. The fourth company you should buy is actually a Chinese advertising company that is gaining business by leaps and bounds as producers clamor to get their products in front of Chuppies. Together, these four companies have gained an average of 187% for my China Strategy subscribers.
If you're interested in making similar profits in 2008, become a member of China Strategy today. As the overall wealth in China increases, our consumer picks in China Strategy will continue to experience soaring share prices. We have a lot of prosperity to look forward to this year, and I hope you can join us for the gains ahead!
P.S. Our agriculture play in China Strategy hasjumped 42% in the last seven weeks! Join us today and get all the details on this winning stock. I believe there's more upside to come because this company has the power to raise prices in its industry due to strong demand and tight supply. Establish a position now before you miss this stock's next big pop!
