Dear Fellow Investor,
We've finally bid farewell to 2008, but now I'm sure that most investors are wondering what 2009 has in store for them. Well, as I'm sure you already know, we're not out of the woods yet with the global financial crisis.
Overall, 2009 will be one of the most challenging years for the global economy, as the economic slowdown continues to weigh heavily on emerging and developed nations around the globe. So it's definitely not going to be an easy ride for investors this year.
In this type of environment, I'm sure that some investors will grow skittish, become overly cautious about their investments or just stuff their money under the mattress. This is especially likely considering that over the past three months many financial advisors have recommended putting a lot of money into cash as a safety net. And many investors have blindly followed this advice.
What these investors don't understand is that they're making a huge mistake. With the Fed's recent rate cut, interest rates are sitting at near-zero levels. You don't have to be a rocket scientist to understand that those low levels just do not pay.
On the other hand, smart investors have been putting their cash to work within the past three months. Take three billionaire investors with sharp eyes for value, for example. Warren Buffet, Wilbur Ross and Christopher Flower have been snatching up beaten down assets during the past quarter.
Sure, these investors still have cash holdings -- those are certainly dropping. But what they understand is that they need to look towards their investments to make them money in the current environment of low interest rates.
The story is a bit different for financial institutions, though. Financial institutions need to have a large cash position to help cushion them against the economic downturn. That's why some of the largest corporate holders of cash in the world are Chinese banks like Industrial Commercial Bank of China and China Construction Bank.
Now, it may make sense for financial institutions to hold cash and for individual investors to hold some cash, but stuffing too much money under the mattress is not a smart idea for individual investors. As I said above, interest rates are at extremely low levels right now, and for people to receive more bang for their buck, they need to be putting their money to work during this tough economic time.
Where to Invest Now
My China Strategy subscribers have been doing just that over the past three months, while many other investors shied away from the stock markets. And this strategy has treated us well.
Two of my most recent recommendations, including China's leading aluminum producer and largest airline, have handed my readers gains of more than 40% in the past three months. During that same time frame, the Dow was up just 8.5%. So here at China Strategy, we're finding stocks that are beating the market by more than 4-to-1! Join China Strategy today and learn how you can put my China Strategy to work for you.
Just look at the gains we picked up in the past three months:
- I first recommended China's number-one aluminum producer on November 20, as a way to take advantage of the Chinese government's increased infrastructure spending. Since recommendation, the company's shares have gained 48%.
- And shares of China's largest airline have done nearly as well since recommendation. I first recommended this company at the end of October as a way to take advantage of the Chinese government's support of state-owned enterprises. Since then, shares have popped 42%.
Just consider if my China Strategy subscriber and I had followed the crowd and not put our money to work over the past three months, we would not have banked these healthy gains.
And we're still not sitting on the sidelines. In fact, in my February issue of China Strategy, I'm going to be recommending one of the leading solar power companies in China. This company is on track to hand my readers a 50% gain in the next four to six months!
Now it's your turn to take advantage of the opportunities that I see in China. You already missed out on 48% and 42% gains in the last 10 weeks alone, but there's still more upside here. But you need to act soon.
So, what are you waiting for? You have nothing to lose, so go ahead and try China Strategy today. Then you can rest assured that you're investing your money in the most profitable opportunities of 2009 -- rather than shoving your money under the mattress. Join China Strategy today!
Sincerely,
Robert Hsu
