You’re probably tired of hearing me say it, but the fact of the matter is China is booming. And recent economic data proves that China is still a bright spot in the global economy … and will be for many years to come.
Take a look at some of the numbers …
China’s January trade balance widened to a $51.35 billion surplus, beating expectations and resulting in the biggest surplus in a year.
January exports rose almost 8 percent, more than doubling expectations, making it the largest increase in almost two years.
January imports climbed 16.7 percent, the biggest increase in 4 years.
No doubt about it, those are stellar results.
But that’s not all …
Uncertainty surrounding China-U.S. relations has also eased a bit. After a recent phone call with Chinese President Xi Jinping, President Donald Trump affirmed the “One-China Policy” that has long underpinned China-U.S. relations.
The China-U.S. relationship is one of the most important in the global economy. And this is a big step forward for not only China, but the rest of Asia as well.
The fact is, close ties between the two countries will only benefit Asian markets, which remain among the most undervalued and bullish in the world.
So stay tuned: You will soon be ramping up your exposure to Asian companies. When the time is right, you’ll be the first to know.
For right now, I recommend adjusting your order to buy China Mobile Ltd. (CHL).
China Mobile shares have not pulled back like I had expected. But the stock remains technically short-term overbought, so I recommend adjusting your open buy order to add shares on a shallower pullback.
Here’s what to do …
CANCEL AND REPLACE your existing good-till-canceled order, using 5 percent of your funds allocated to the Asia Investments section, to buy China Mobile Ltd., symbol CHL, at $53.50 or better. NEW PRICE: $55.00 or better. When filled, 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 to $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
