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April 17, 2008

Dear Fellow Investor,

It's been a great three weeks aboard the Crystal Symphony cruise ship. Along with over 100 of my subscribers, I visited five cities in China and docked for a brief visit to Osaka, Japan. It was a great experience to travel with my subscribers and see first hand the amazing transformation that is occurring in the region.

Red Box: Profit from the Commodities Boom

With domestic markets stuck in a 10% trading range and many industries around the globe slowing, it is important to focus on pure plays in the strongest sectors. In the current environment, the global bull market in commodities continues to show great strength. China Strategy today for my favorite commodity plays right now.

One of the best ways to profit from the strength in commodities is by investing in agricultural companies. The record high inflation numbers are affecting the cost of just about everything, particularly food prices. So to add some profits to my subscribers' pockets and provide capital for companies to produce more food to the world, we've been investing in a Chinese fertilizer company. We have about a 60% gain so far, and more profits on the horizon.

The changes that I observed on this trip to China just confirmed my belief that this country will be the epicenter of global economic growth in the 21st Century. With preparations for the summer Olympics well underway, Beijing has made impressive improvements in its infrastructure, cleanliness and general openness to visitors during the past 18 months. Such significant changes in a short period of time prove to me that China is working extremely hard to become a responsible and respectful member of the global community.

Much of Western media, though, hasn't brought these drastic improvements to light. Rather, for the three weeks that we were in Asia, the global media's attention on China has been focused on the riots in Tibet. As devastating as this situation is, the media missed the real cause of the riots. It wasn't religious freedom or even human rights. It was about higher food prices.

The poor people of the world are having a much tougher time adjusting to $11 for a bushel of wheat than oil at $110 a barrel. So the protests may have started with a few hundred monks protesting China rule, but they grew violent as thousands of angry low-income Tibetans joined the riots. Interviews with several Tibetans who took part in the riots revealed that most of the rioters took to the streets because their lives are getting harder with higher food prices and stagnant income.

As a result of all this bad press, a dark cloud is hanging over the Beijing government. But the truth of the matter is that many people outside of China just do not realize how popular Chinese president Hu jin-tao and premier Wen Jia-bao are in their home country. These leaders have taken great strides to improve their country. China's economy grew by nearly 60% during the past five years, and most Chinese are far better off today than anytime in the past.

So the focus on China should be centered on the country's significant economic achievement, not a bad PR situation. It is important not to get distracted by the media on the Tibet situation or China's economic picture. Because, from an investment perspective, the Tibetan riots and related protests won't have any impact on China's overall economic growth. Economically, Tibet contributes less than 1% of China's GDP.

The Tibetan riots, however, are related to one of the most important investment themes of our time -- the global bull market in agricultural commodities. In fact, my top agricultural play is up 60% in the last six month's despite the market's recent volatility. To learn more about my top agribusiness play that is profiting from the growth in China and the strength in commodities, join China Strategy today!

Beijing's Top Priority

China is at the top of my investment strategy and one of the best investment opportunities of our time, because it is focused on economic growth. I always prefer to invest in countries with governments that make growing their economy their number one priority, rather than nations that focus on redistribution of wealth.

The Chinese government continues to focus on economic growth as its top priority, not redistribution of wealth. This is because the Chinese have learned through tremendous suffering that government-led wealth redistribution tends to make everyone equally poorer. The only people who benefit from redistribution of wealth are the politicians who carry out the process.

China's continuing success is largely attributed to its commitment to economic growth. Today, China reported its first-quarter GDP numbers for 2008. Influenced by the global economic slowdown, China's GDP slowed to 10.6% year over year in first quarter from 11.7% year over year in the fourth quarter of 2007. The softening was mainly driven by slower growth in net exports, which is related directly to the current U.S. recession.

Aside from the slow-down in exports, other segments of China's GDP, including industrial production, retail sales and capital investments, all continued to enjoy strong growth. This confirms my prediction that the U.S. recession will only have minor effects on China's economic growth this year. I expect the country to still enjoy growth of around 10% in 2008. Join China Strategy today to find out the best way to profit from China's massive growth today.

The biggest mistake most investors make regarding China is basing their investment decisions on outdated assumptions. Things often change quickly in China. Even for someone who visits China as frequently as I or my friends in Hong Kong do, we have to adjust our mindset constantly to take these changes into consideration. I am constantly updating my China Strategy subscribers on my firsthand research and insights into the most profitable opportunities in China right now. Join China Strategy today and enjoy your share of the incredible wealth-building opportunities that China has to offer.