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Sunday, November 16, 2008

(Mailing List) Robert Shu's China Strategy Newsletter

By Robert Hsu, Editor, China Strategy

Fellow Investor,
Just because Barack Obama won the election, doesn’t mean this credit crisis is now over, that housing prices will automatically rebound, or that the stock market will hit new heights.

On the contrary, it's about to get a whole lot uglier, and there’s nothing the President-elect can do to stopping it.

If you don’t reposition your assets now, as I’ll show you in tonight’s issue (posted online), the continuing financial collapse could wipe out what’s left of your wealth.

Here’s why…

The banking crisis, the liquidity squeeze, and the collapse in home prices has sent investors fleeing U.S. stocks as if by being chased by the running of the bulls in Spain.

The result has crushed the U.S. financial system, triggered a $700 billion bailout, and led to the demise of many hallowed financial institutions—blindsiding U.S. investors who have been told that “everything would be OK with President Obama at the controls. ”

And that’s not even the half of it

The financial crisis has now spilled over to Europe, Russia, Latin America and Asian markets. Which is why European and U.S. central bankers coordinated a global rate cut of epic proportions.

And now with the International Monetary Fund estimating US loan defaults could hit $1.4 trillion in short order, it’s no wonder why foreign investors are avoiding ALL U.S. investments at all costs and are piling into China stocks hand over fist—despite Obama’s stunning victory.

The reason is simple:

China is the only country that’s not only growing but also has the financial muscle to pull the world out of this economic mess.

You needn’t take my word.

World Bank President Robert Zellick said the same thing on October 8th. What’s more, experts estimate that China’s growth will hit 8.5% for 2009 and accelerate to nearly 9% again in 2010.

On top of that, the Asian Development Bank estimates that China’s trade surplus and surging capital inflows will not only increase the country’s liquidity but also result in faster appreciation of the yuan against the dollar.

Do you realize what this means?

As the Fed hands out money like pancakes at a fireman’s picnic, more foreign investors are going to flee U.S. stocks and head straight for China where they will profit not only from economic growth but also from currency appreciation as well.

And the result will enrich those investors who understand that capital flows to the highest return in good times and bad…

…and are taking this opportunity to scoop up world-class assets at 40%, 50%, even 70% off their past highs in advance of the pending recovery.

That’s why it’s crucial that you add our top China stocks to your holdings now and why I’ve sent you this Special Alert.

If you can buy our top stocks today—while they’re still bargains—you could be looking at 20% to 40% gains in the next 12 months as the flight to safety lands squarely in China.

Details in tonight’s China Strategy.

What the Government Isn’t Telling You Could Send You to the Poorhouse …

…or Make You Wall Street’s Next Millionaire

I’m Robert Hsu, and as you’ve suspected, you’re not getting the full story on the continuing credit crisis from the U.S. government or the Fed.

The shocking truth is that Bernanke’s monetary policy and the Fed’s bailout plan has flattened economic growth like a mud hut in the middle of a hurricane.

The long-term results are so disastrous for U.S. markets, that foreign investors are now saying “thanks, but no thanks” to U.S. stocks—despite their love affair with Barack Obama.

The reasons are simple:

Foreign investors know the U.S. stock market won’t come back for some time. They know that layoffs in the U.S. manufacturing jobs will result in new hires in China. They also know that as U.S. growth slows, China growth will drop too—but to nowhere near U.S. levels.

In fact, our research shows that China growth will hit a mind-boggling 8% in 2009.

To be sure, that’s less than the sizzling hot years of 11% annual growth, but compared to the negative U.S. growth next year, you don’t have to be a computer scientist to know where the big money will be made in the next two years.

What’s more, foreign investors also know something that Obama and his team of advisors would never admit: that unlike the U.S. banking system, the Chinese banking system is much safer now—with none of the exposure to the subprime mess.

In fact, most U.S. investors don’t know this, but the Chinese banking system is dominated by four big state-owned banks—banks backed by the world’s largest foreign reserve that can write a check anytime they want—and without Congressional approval or bickering!

And with $1.4 trillion in cash sitting in their banks, there’s no liquid crisis in China. The Chinese government can write a check anytime they want—and it will clear!

Which is why the smart money is flooding into China at light speed, with investors cherry-picking world-class Chinese companies for pennies on the dollar.

And if Warren Buffett’s $230 million investment in China’s leading car and manufacturing company is any indication of the opportunity at hand, this is a situation you can’t ignore.

Which is why…

You Must Reposition Your Assets Now

Let me sum up the dangers and the opportunities:

Obama’s proposed bailout plan is sending U.S. stocks into the tank. The giant sucking sound you hear are foreign investors who are fleeing U.S. markets in search of safer and higher returns.

The result has slowed U.S. and global growth, forced energy prices to fall to eight-month lows, and triggered a global rate cut of epic proportions.

The chain reaction will make the US stock market even less attractive to U.S. investors…as the combination of low energy costs, low interest rates, and a stable banking system drives more investment into China.

If you can take a small position in just one of our top China stocks—before the flood of cash begins in earnest—I guarantee you’ll not only thank me 1000 times come this time next year…

…but I’ll win you as a subscriber for life.

Details in tonight’s issue.

Your Timing Is Perfect

As U.S. investors continue to hide in panic, shrewd investors like you and me are going to make a bundle as investment in China surges and the country uses its newfound capital to build more roads, bridges and infrastructure at record pace.

You needn’t take my word, a recent report by McKinsey Global Institute will tell you the same thing:

“In 20 years, China’s cities will have added 350 million people—more than the entire population of the United States today.”

“By 2025, China will have 221 cities with more than one million inhabitants—compared with 35 in Europe today—and 24 cities with more than five million people.”

“By 2030, 1 billion people will live in China’s cities…170 mass-transit systems could be built…40 billion of square meters of floor space will be built in five million buildings50,000 of which could be skyscrapers.”

In other words, as China transforms itself from a nation of farmers to a nation of urban dwellers, the equivalent of 10 New York cities will need to be built, and in doing so will richly reward U.S. investors who invest now.

Truth is, China will continue to grow…

Despite the collapse in the U.S.
Despite the failure of the U.S. banking system
Despite the demise in the U.S. housing market
The reason is simple:

With 8% growth, China’s economy is still growing like a weed. Its standard of living is on the rise. And its people are spending like there’s no tomorrow: buying into a much richer lifestyle, filled with cell phones, big-screen TVs, and cars—the same things we Americans take for granted.


When you consider that by the year 2025 China will have 221 cities with more than one million people living in them, you can only imagine the kind of money that is going to be made, as China’s newfound consumer class enters the marketplace and replaces the American consumer as the supreme driver of world growth.

All thanks to infusion of cash from foreign investors that’s going on behind the scenes now.

Tragically, the financial media is missing this investment story by a country mile. That’s because they’re blinded by the daily ups and downs in the Dow and simply can’t see beyond U.S. borders.

And since by all accounts “China’s growth is dead,” Wall Street’s analysts are not only missing this story…

…but also U.S. investors are missing out on huge profits that are headed this way.

And I’d like to help you grab your share.

For more than a decade, I’ve been helping my readers and clients grow steadily richer investing in Asia.

And I can tell you with unmatched certainty that if you invest alongside us now—while Wall Street is looking the other way—you’ll be in a superb position to pyramid your wealth as the coming capital infusion triggers a second wave of growth to hit China.

In fact, since I’ve been telling my readers about China’s next phase, our individual stocks have banked up to 130% profits…while our total holdings have beaten the S&P 500 by more than $4-to-$1 in 2007.

But even these great gains will pale in comparison to what lies ahead as China continues to build more factories, more roads, more bridges and more skyscrapers.

When you consider the U.S. economy is projected to contract next year while China is on track to grow at 8%, you don’t have to be an Einstein to know that the surge in China stocks will form the foundation for a turnaround in the U.S. stock market as many leading China stocks are traded right here on the NYSE and NASDAQ.

The bottom line is this:

In a world that’s been crippled by the U.S. financial crisis, the Fed bailout and collapsing consumer and investors confidence, the flood of capital pouring into China will not only put powerful upward pressure under the stock prices of companies that are fueling China’s new growth…

…but also change the face of Wall Street forever.

Which is why I’m telling my readers to expect…

20%—40% Profits in the Next 12 Months

Here’s where the biggest profits will be made:

Profit From China’s Thirst for Oil:
Our top oil stock here has handed my readers 30% gains so far. Our newest recommendation could be even bigger. Two reasons: 1. Rising oil prices, and 2. China’s dependence on foreign oil to fuel its growth.

When you consider that China’s dependence on energy exports is expected to increase significantly over the next 20 years and it is projected that China will need to import at least 60% of its oil and 30% of its natural gas by 2020…

… you can see why I’m confident our oil strategy ALONE will make you 20%-40% richer in the next 12 months alone. Details here.

Profit From China’s New Housing Boom:
As Chinese workers invest their newfound wealth, their first goal is to own their own home.

Our top company in this sector is China’s leading real estate services company, whose earnings have not only risen an incredible 84% in the last quarter, but whose revenue has jumped 79%

In tonight’s issue (posted online), you’ll read how the company’s transactions grew fivefold in the past year and why we see the company repeating its two-month gains of 70% that it enjoyed in 2007.

Profit From China’s Love for Cell Phones and All Things Wireless:
Make no mistake about it, China leads the world in telecom growth. By 2010, half of the world’s 1 billion global subscribers will be located in China.

This is what makes our top China telecom a great play for American investors. It’s not only a state-run oligopoly but also has handed us 74% gains since we bought it.

Our most recent update, now posted online, brings you the full story on all of our current holdings and why we’re banking on another 50% profits by year’s end.

As you’ll see…

The Biggest Move Will Come
in the Next 15 Days

As you know, nobody rings a bell to tell you when the big buying wave will begin, but I can tell you this:

Our time-proven, momentum-based stock-picking system continues to deliver profits for our readers, not only beating the market by more than $8-to-$1 since 2005…

…but also thrashing the market by $7-to-$1 last year, specifically with 35% returns vs. 5% for the Dow.

Our biggest winners to date include:

CNOOC, +30%
Ctrip, +30%
Aluminum Corp of China, +285%
New Oriental Education, +133%
Mindray Medical, +41%
Sinopec, +58%
SPDR Gold, +30%
Apple, +118%
Las Vegas Sands, +52%
Yum Brands, +15%
Now with China’s second wave set to deliver even greater growth, even these great gains could look like a drop in the bucket.

Frankly, no other investment newsletter advisory in the world knows the China market like we do, spends as much money on research as we do or makes as much money in China as we do.

Which is why I can tell you with unmatched certainty that our research shows there’s a buying wave forming within the next 15 days.

That is also why you can invest in our recommendations with confidence that you’ll grow 20%-40% richer in the next 12 months.

My $99 Trial Guarantees
You’ll Profit or Pay Nothing

Look…

A regular one-year subscription to my China Strategy service costs $199.

However, because my research shows the big move on these stocks will be coming in the next 15 days, my publisher has let me open the door to a limited number of trial subscriptions for just $99, along with our “profit or pay nothing” guarantee.

By simply accepting my trial offer today, you get to…

Try China Strategy risk-free
Profit from Wall Street’s turnaround
Bank your profits and decide on your own terms
And that’s just the beginning.

You’ll also receive five FREE bonus reports:

5 Stocks to Buy Now
China’s Golden Age: Companies Cashing In on China’s Next Generation
China’s 5 New Energy Opportunities
Wall Street’s Biggest Losers: Stocks to Avoid
The Chuppie Strategy
Once you receive everything, you will understand why my approach has not only delivered $8-to-$1 gains since 2005…

…but also beat the market by $7-to-$1 last year…

…and why nobody makes more money investing in China than we do.

Window of Opportunity
Closes at Midnight

When it comes to China, the big money is always made when most investors are looking the other way. Frankly, it’s been that way for the past 120 years. It will continue to ring true for the next 20 as well.

With all eyes on the U.S. economy NOW, you couldn’t ask for a better time to add our top stocks to your holdings—before free-market forces smell a turnaround and bid our stocks higher and higher.

That’s why my offer to join me expires tonight.

My China Strategy service is for investors who understand the great opportunities that lie in China RIGHT NOW and are willing to act on my recommendations—and without reservation.

If you can’t make up your mind before midnight on my $99 money-back trial, chances are you won’t follow our recommendations, and you would take away a slot from an investor who would profit from our advice.

Which is why my window of opportunity expires tonight.

That’s why if you are serious about profiting from China’s second wave and are willing to take me up on my special offer today …

… I guarantee you’ll be the first in line to profit from Wall Street’s China-driven turnaround, or you won’t pay a dime.

And the best part is, you have nothing to risk by accepting my invitation today.

Join me now. I guarantee it will be the best financial decision you’ll make in 2008.

Sincerely,


Robert Hsu
Editor, China Strategy

P.S. If you’ve read this far and decided not to grab my $99 offer and profit from China’s second wave, please remember this:

China will continue to grow at 8% in 2009…

Despite the collapse in the U.S.
Despite the failure of the U.S. banking system
Despite the demise in the U.S. housing market
As one of my readers, you’ll not only be first in line to catch the next wave of China profits, but also find yourself 20% to 40% richer in the next 12 months.

Today’s issue and your free report reveal why, and promises you’ll profit or get your money back.



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11/13/2008 9:03PM

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