Dear Fellow Investor,
Happy New Year!
We're merely hours away from ringing in 2009, and I'm sure many of you are ready to say good riddance to 2008. This year, by far, has been one of the most difficult years in financial market history.
The historical events that occurred in 2008 rocked the global economy and financial markets. And domestic and international investors were left reeling in the aftermath. Just take a look at some of the important events for China investors in 2008:
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For the past couple of weeks, I've been advising you to prepare your portfolios for the New Year. And since China is going to be one of the few countries in the world that will experience strong economic growth in 2009, you need to align your portfolio with the best China investments to take advantage of this strength. That's why I've written a special report -- 2009 Global Crisis Recovery Plan -- to help you prepare for 2009 and point out the most profitable opportunities in China. And as a valued Inside China Dispatch reader, I'm offering this special report to you for just $29.95. That's a $20 discount off the regular $49.95 price. So if you order your copy of 2009 Global Crisis Recovery Plan today, you'll receive all my insights on what happened in 2008 and why China is the best place to be investing now, as well as my TOP THREE PICKS for 2009. Learn more now! |
The Global Bear Market of 2008: With the exception of low-yielding Treasury securities, practically every asset class around the globe lost significant value. In fact, the S&P 500 dropped more than 40%, Hong Kong's Hang Seng index lost 48%, and most European stocks plunged more than 50%.
The Failure or Near Collapse of Financial Institutions Around the World: I can't think of a more defining moment for this year's financial crisis than the collapse of investment bank Lehman Brothers. The financial institution's failure accelerated the global financial domino effect that put the entire global financial system at risk. In fact, after Lehman's crumpled under the weight of its bad mortgages, other major financial institutions -- including AIG, Freddie Mac and Fannie Mae -- admitted failure and were bailed out by the government.
Wall Street Turmoil Spread to Main Street: It didn't take long for the U.S. consumer to cut back on spending as the financial crisis spread around the globe. And since consumer spending accounts for nearly 70% of economic growth in the U.S., the cutbacks caused the whole economy to slip into recession. In fact, unemployment, economic growth and other key economic gauges are close to their worst levels in a generation.
The Beijing Summer Olympic Games: People from around the world tuned in for one of the most widely anticipated events of the year, making the 2008 Summer Olympic Games the most watched event in television history. The Olympics displayed China's economic emergence and let the world know that China is well on its way to becoming a major economic powerhouse.
The Election of a Pro-China President in Taiwan: After years of having a pro-independence president, Taiwan elevated Ma Yin-jeou as the new president in March. The landslide victor marked an important turning point in the relationship between Mainland China and the island, as Ma promised to improve the relations between China and Taiwan. And we've already seen this taking place with increasing economic cooperation between the two nations, including direct air, sea and postal links between Mainland China and Taiwan.
Now, that's just five of the historic events that took place in 2008 and shaped the economic and investment environment for this year and 2009. But even after one of the stormiest years in financial history, what we need to walk away from 2008 with is the understanding that this was a breakout year for China.
Sure, the country has been affected by the global financial crisis and economic slowdown. But China is one of the few nations in the world that is still growing at a robust 8% to 9% -- a pace I expect to continue well into 2009. That's because the Chinese government will continue to focus on spurring economic growth on in the New Year, which will ultimately help support the Chinese stock markets.
In fact, Chinese stocks are already outperforming U.S. stocks. Some of my top picks are up significantly in December alone:
- China's largest airline, up 58%
- China's leading aluminum producer, up 29%
- China's offshore driller, up 20%
- China's number-one insurance provider, up 19%
- China's leading mobile service provider, up 13%
After these dramatic gains in just four weeks, there's no denying that the place to be investing right now is China. After setting a bottom in October, Chinese stocks have trended higher, and they will continue to rally in 2009 as the Chinese economy picks up speed.
While you've already missed out on the gains mentioned above, it's not too late to snatch up your share of the profits in 2009. Join China Strategy today and I'll guide you to the most profitable investments in China in 2009. In fact, in next week's China Strategy dispatch I'll provide my 2009 outlook, including what to expect and where the most profitable opportunities will be in the New Year. So, join China Strategy today!
Have a Safe and Happy New Year!
Robert Hsu
