Signs Chinese Stocks Are Poised For Another Run
While the outlook for U.S. stocks will likely remain gloomy at least until the next round of quantitative easing begins, the next few months could see big gains in the Chinese stock market. I have an opportunity in mind that could help you take advantage of this, but first let me review some of the reasons why China is so attractive right now: 1. China Passes New Milestones. China has recently surpassed Japan to become the world's 2nd largest economy. It has also become the world's largest energy consumer, and the world's largest car manufacturer. General Motors now sells more cars in China than in the U.S. What's more... 2. China's Growth Rate Promises Big Returns. Despite the economic slump in the Western world, China's projected growth rate remains robust. I doubt it will fall below 8% for many years. With U.S. growth low to non-existent today, investors need to have some exposure to China’s expansion. But more importantly, the figures for the first half of 2010 suggest that China's economy is rebounding, even as the U.S. recovery remains a long way off. For instance... 3. 176 IPOs Were Launched in Chin in the first 6 month of the year. The large number of IPOs this year is a bullish sign that tells me free enterprise, entrepreneurship, and innovation will drive China's economy forwards. 4. Retail Sales In China Topped 1 Trillion yuan. With consumer spending weakening in the U.S., China hopes to lessen its dependency on exports and grow its domestic consumption to sustain its economic miracle. And that is exactly what's happening. Retail sales in China surpassed 1 trillion yuan—or $180 billion—growing at a year-over-year rate of 18%. This trend, if continues, should produce rapid sales growth for Chinese stocks. Besides, Chinese exports have also rebounded... 5. Chinese Exports Hit New High. China's exports for June set a new record. What's more, China’s exports exceeded imports again, giving China, in July, its highest trade surplus level in 18 months. 6. Industrial Output Rose 13.4%. While the U.S. recovery remains a long way off, China's industrial output continues to grow. 7. Fixed-Asset Investment Rose 25% in the first half of the year. Total investment in fixed assets rose has been growing at a double digit rate since 2001. In July, China's foreign direct investment rose 29%, a relative “slowdown” compared a breakneck pace of the last year. These factors and many more tell me that Chinese stocks are poised to break out of the trading range they have held to for the past few months. Anytime after Labor Day, we could see the beginning of a very rapid rise. To help you take advantage of this urgent opportunity, I have arranged for you to attend a private briefing on China's best investments...