A Better Risk-to-Reward Proposition in China
Now, I know you're probably thinking that investing in emerging markets has always been risky–and that it's probably even riskier now given the current economic and financial crisis. But the fact of the matter is that given today's extremely volatile financial market condition, it is risky to invest in ANY market–developed or emerging.
However, what China offers investors today is a better risk-to-reward proposition. Just look at the differences in stock market performance this year–China's A-Share index in Shanghai is up over 60% this year (even with the recent consolidation) compared to the S&P 500 that has only gained 13%.
The reason behind the great divergence between these two markets has to do with the root cause behind the sell-offs in both countries.
China stocks sold off mainly as a result of the over-speculation in Chinese stocks over the past two years. So it was a natural correction of speculative excess. On the other hand, during the past two years, the U.S. stock market moved up slightly, and the sell-off last year was caused by fundamental deterioration in the U.S. economy and financial system.
Now that China stocks have corrected, a good portion of the risk has been lost while the reward potential remains high, The opposite is true for investments in the U.S.–there's more risk and less reward investing in U.S. stocks today than there has been in the past. That's why China is going to be a much more viable investment opportunity for the foreseeable future.
We're seeing this first-hand here at China Strategy. Just take a look at the incredible run we've had so far this year:
And that's just the beginning! My China Strategy subscribers are also sitting on three triple-digit winners – including a nearly 200% gain in China's leading education services company – three winners over 70% and several other gains over 50%.
What's great is that it's not too late to get on board. But you must act now–before you miss out on the next leg of profits as the year-end rally bids these stocks higher.
Miracle is a strong word, but it’s the right word to describe what’s happening today in China. As this once-great land modernizes and shifts to a market-driven economy, the staggering economic growth taking place there will continue for the foreseeable future. The profit potential for investors who truly understand what’s happening inside China is equally staggering.
That’s why Robert Hsu made it his mission to help you profit from China’s economic miracle. In his China Strategy service, you’ll receive a monthly issue, weekly updates and Flash Alerts to keep you abreast of everything that’s happening in domestic and foreign markets. With this service, Robert will help you profit by bringing you the real China—the China that he knows first hand by reading Chinese newspapers, visiting the country, and his on-the-ground network of analysts. He’ll also protect you from the risks that cost many unwary investors dearly, by providing you with specific buy and sell advice on only the best-positioned companies set to profit from the China Miracle.
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