Up to 13.8 Percent and 21.5 Percent gains on FXI
and USCOX. Hold All Positions.
Trade and policy uncertainty remains for the region, but the Asian stock markets are conveniently ignoring the potential risks. Larry had said many times that a trade war between the U.S. and Asia hurts both sides, so a compromise will ultimately be reached that benefits all involved.
Asian stock markets agree, as they have enjoyed bigger gains than the U.S. this year.
Take a look at some of the year-to-date returns: China is up 11.3%, India is up 11.4% and the Hang Seng China Enterprises Index of Hong Kong-listed Chinese stocks has gained 8.8% — all well above the 6% gain registered by the S&P 500 Index.
Major underlying factors like an expanding population, rising incomes and dynamic monetary policy keep the Chinese and Asian growth story alive.
That’s exactly why we wanted to gain more exposure in the region.
Last month, we recommended adjusting your order to buy China Mobile Ltd. (CHL) and right on cue — shares pulled back as expected. So, you should have had no problem buying shares at our adjusted entry price of $55.00. Great! I will be looking to add more exposure to the region very soon.
Continue to …
Hold your shares in China Mobile Ltd., symbol CHL, and maintain your good-till-canceled protective sell-stop at $48.15.
If you have not purchased CHL, you may purchase it now at the market using 5 percent of the funds you have allocated to the Asia Investments section. Place a good-till-canceled protective sell-stop at $48.15.
In the meantime …
Hold your shares in U.S. Global Investors — China Region Fund, symbol USCOX. Exit the fund if it closes below $6.20 on any trading day.
If you have not purchased this fund, you may purchase it now at the market using 5 percent of the funds you have allocated to the Asia Investments section. Exit the fund if it closes below $6.20 on any trading day.
Hold your shares in China National Offshore Oil Corp. Ltd., symbol CEO, and maintain your good-till-canceled protective sell-stop at $108.29.
If you have not purchased CEO, you may purchase it now at the market using 5 percent of the funds you have allocated to the Asia Investments section. Place a good-till-canceled protective sell-stop at $108.29.
Hold your shares in iShares China Large-Cap ETF, symbol FXI, and maintain a good-till-canceled sell-stop at $27.44.
If you have not purchased FXI, you may purchase it now at the market using 5 percent of the funds you have allocated to the Asia Investments section. Place a good-till-canceled protective sell-stop at $27.44.
