Dear Fellow Investor,
The time to invest in Chinese stocks is now!
Last night, the U.S. Senate approved the updated version of the $700 billion bailout bill. After the House of Representatives rejected the plan on Monday -- sending global markets in a downward tailspin -- revisions were made to the package, including an increase in insurances on people's deposits ($100,000 to $250, 000) and tax breaks for businesses and the middle class.
Now, everyone's holding their breath to see if the House will also approve the rescue bill tomorrow.
While there are three possible ways this situation could pan out, I'm expecting the bailout plan to be approved. That's because there's a lot at stake, and a rescue plan is vital to stabilizing our financial system and rejuvenating our economy.
And when the bailout package is passed and the Treasury succeeds in preventing further near-term damage to the global financial system, this past Monday's capitulation selling will likely lead to a strong yearend rally and sideways trading for a few months after that.
To learn more about the upcoming fourth-quarter rally and the best ways to prepare for it, join China Strategy today!
Chinese Stocks Will Lead the Charge
Hong Kong and Shanghai traded shares have taken a beating this year -- down 35% and 56%, respectively. But this correction was expected after Chinese stocks incredible run over the past few years, and the sell-off has now created some incredible valuations and great buying opportunities.
So, I'm expecting Chinese stocks to lead the global markets higher in the upcoming fourth-quarter rally. Here's four reasons why:
- Reason #1: China is far less leveraged than most countries, since its citizens save more money than any other nation in the world. That has made it less vulnerable to the global financial de-leveraging that is taking place right now.
- Reason #2: China doesn't have a lending mentality -- it's still in the early stages of developing its consumer finance industry. So it doesn't have a lot of bad debt.
- Reason #3: China's economic growth continues to be robust -- growing around 9% this year. And the government has shifted its focus from fighting inflation to fighting an economic slowdown in the country.
- Reason #4: And finally, as I mentioned above, China's stock market sold off the hardest and overshot on the downside this year. It's due for a correction to the upside.
And those are my main reasons why you should be buying Chinese stocks right now. Not every Chinese company will participate in the fourth-quarter bounce, but many stocks will and fuel the global markets move higher. You just need to know which companies will benefit the most.
My China Strategy subscribers are already preparing for the fourth-quarter rally. And many of the stocks in our portfolio will be leading the charge.
Now, I know that some of you are probably thinking that it's not prudent to be snatching up Chinese companies before the House votes, the dust settles and the market responds to the political situation and Treasury bailout plan. And you're right, now is not the time to be overly aggressive. But if you sit on your hands too long, you may miss the start of the bounce higher.
That's why I'm recommending that my China Strategy subscribers start picking up shares in some of my favorite Chinese companies today. My top three picks right now include:
- Top Pick #1: China's leading insurance provider -- China Strategy readers are already sitting on a 22% gain.
- Top Pick #2: China's number-one medical devices manufacturer -- China Strategy subscribers have a 109% gain, so far.
- Top Pick #3: China's leading wireless provider -- China Strategy members have realized 93% profits, so far.
The profit potential of these three companies alone will more than pay for you subscription to China Strategy! Plus, along with these three companies, I'm keeping a close eye on other potential China plays -- and I may even make a new recommendation next week.
So to ensure that you don't miss out on a single recommendation and that you're investing in the most profitable China plays, join China Strategy today!
Robert Hsu
P.S. As I said above, the three companies that I teased today have enough profit potential to more than pay for your subscription to China Strategy. And if that doesn't convince you to try China Strategy, please remember that I have a 100% Money-Back Guarantee. So if your Chinese companies aren't moving higher in the next 90 days, just contact us, and we'll refund every penny of your subscription! Join China Strategy today!
