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Message: China Report

China Report

posted on Nov 24, 2009 04:51PM

Make no mistake about it—

When President Richard Nixon visited China in the eary 70's, it induced China to usher in a bold new chapter in U.S. / China relations but also laid the foundation for 35 years of sustained global growth.

Tragically, President’s Obama’s trip—no matter what the White House press machine says—falls far short.

His failure to craft a workable currency policy with the Chinese has created a whole a new set of behind-the-scenes hostilities…

…and will ultimately result in a roadblock to greater U.S. growth as China continues to prosper.

Truth is, you’re not getting the straight story from the press on President Obama’s trip to China.

What You’re Not Being Told Could Affect Your Future Wealth for Years to Come!

Despite the smiles you saw at the joint news conference, the truth is:

The Chinese absolutely hate the Obama/Geithner/ Bernanke easy money policy that is driving down the dollar to ease America’s debt burden and increase U.S. exports in an attempt to steal demand from the rest of the world.

They’re not going to sit idly by and take it, either!

That’s why President Obama and President Jintao never addressed this key rift between the world’s two largest trading partners in their joint statement, citing only “past agreements” and not new ones.

The reason is clear: They couldn’t come to any agreement on the looming currency war that’s being fought behind the scenes.

Here’s why:

The Chinese are not going to be played for fools as the falling dollar makes their trillions in Treasury bills worth less daily, causes their exports to shrink and is fast creating a form of U.S. currency protectionism the Chinese will not stand for.

The Wall Street Journal reported these dangerous rift hours before President Obama landed on Chinese soil:

China’s chief banker says that U.S. currency policy needs to change—and not China’s!

And he may be right!

Truth is, the U.S. needs China now more than China needs the U.S. as China continues to decouple it from great U.S. financial problems, like shifting its billions in stimulus spending towards greater internal growth, while U.S. stimulus spending has seemingly vanished into thin air.

That’s why China’s economy will exceed 9% growth in 2009, our China stocks are soaring, and U.S. fortunes look to be stalling. President Obama leaving China with no action on China’s currency situation is just another bad omen.

Truth is, no matter how the White House wants to cushion this; a mammoth currency showdown is headed our way as China continues to send behind-the-scenes signals that it will not be bullied about. >And if historical patterns hold true, you’re looking at $3-to-$1 gains by the end of next year.

Tragically, most investors will miss out on the profits.

U.S./China currency showdown will only result in BIGGER homegrown China profits; your next move is crystal clear:

Load up on China stocks that are only growing internally and riding the China recovery to new heights.

  • For example, of China Internet companies like Baidu, which has handed over 238% gains so far this year.
  • China travel companies like Ctrip, which has 171% gains since March.
  • China video entertainment companies like Perfect World,handed out a 70% profit…China energy companies like Yanzhou Coal, a 100% gain in 8 months…and real estate companies like E-House which has 222% gains in 8 months.

When the U.S./China currency battle heats up, you’re going to see not only their profits rise but their earnings as well, at the same time see many U.S. shares fall into the tank.

We’re not only targeting another 50% to 75% profits on these companies in the next 12 month…but also urging Investors in no uncertain terms need to add to their holdings now if they are serious about riding the China recovery to new heights.

China tech companies are riding a new wave of tech growth. Here’s why:

1. The sector it’s in is growing 20% each year.

2. The companies are using outsourced technology business from India—thanks to lower wages, a larger supply of engineers and a huge domestic market.

The reason some are up 259% is no fluke, either. They were originally formed to help Microsoft and IBM localize their software into the Chinese, Japanese and Korean languages.

As a result, they are not only chock-full of more than 5,000 savvy IT professionals, but they have also expanded IT services to include R&D services, enterprise solutions, and quality assurance and testing.

So it’s no surprise that client base has expanded from Microsoft and IBM to Hewlett-Packard, EMC Corp., NEC Corp., 3M, Huawei and Lenovo…or that earnings jumped 39% last quarter.

With outsourcing to China hitting record levels, research shows that 2009’s great gains could pale in comparison to what lies ahead.

Most investors don’t know this, but a huge portion of China’s $586 billion stimulus package is to fund a major west-to-east gas pipeline project.

As a result, the demand for high-quality drilling and transportation equipment are shooting through the roof.

Up 222% in the past eight months, there is a real estate giant about to shock Wall Street again. Three reasons:

  • This real estate company is one of the leading Chinese players in this sector. Its earnings rose an incredible 65% last quarter.
  • Its transactions grew fivefold in the past year, and I fully expect to see the company repeat its recent performance.
  • This company offers Chinese consumers a large scope of services, good brand recognition and a strong geographic presence, which are essential as Chinese workers invest their newfound wealth in real estate.

You could see a 50% jump in the stock price in the next 60 days and a double by the end of the year.

Watch for these High-growth China companies…

  • All of which are riding China’s unstoppable growth.
  • All of which are on track to deliver blowout earnings growth of 25% to 100%.
  • All of which could hand you 30% to 50% gains in the next 90 days and could double your money by year’s end.
  • All of which are terrific buys waiting for you to do research and make real profit.

From... The CHINA Report

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