Asia: The Next Major Equity Bull Markets Ready to Soar.
All year long, I’ve been telling you there’s nothing to worry about when it comes to Asia and especially to China or Southeast Asia …
Trump simply isn’t going to hit China with tariffs without getting some concessions in debt relief in return. Beijing owns over $1.4 trillion of our government debt and it knows Trump is coming and going to negotiate.
Moreover, are all the other factors I’ve been citing incessantly: 1.4 billion souls in China and more than 4.4 billion in all of Asia. That’s a hair under 60 percent of the world’s 7.4 billion people, as of the global population estimate made by demographic authorities in August of this year.
Flexible currency regimes, now more market driven than ever before. Responsible governments. The $1 trillion new Silk Road through Western China and onward all the way to Germany.
Low energy prices. Vibrant domestic demand building. Rising incomes. So-called “ghost cities” now starting to fill up, just as I predicted.
About the only negative I can see, which will actually end up being a positive, is India’s banning of gold and an aggressive move toward a cashless society.
It won’t work and will instead create the exact opposite of what Prime Minster Modi wants: An underground market for just about everything from food and gold to art, collectibles and even wedding gifts.
Asian markets are all now in the early stages of forming new bull markets that will rock your world with profits in the months and years ahead.
I see China’s equity markets quadrupling over the next four years. Ditto for Singapore, Hong Kong and Thailand.
Vietnam and Cambodia — still too early to invest in — will come into their own later next year with reforms galore as part of the ASEAN (Association of Southeast Asian Nations) …
Right along with Indonesia and Malaysia’s economies and markets. Coupled with new bull markets in many of those countries natural resources, especially in energy, in rubber and in copper.
Besides the U.S equity markets for the next couple years, Asia is where it will be at. Real profits, real economic growth, real wealth building.
But for now, I do not recommend going full bore. That’s because Asian markets will pull back right along with U.S. equity markets in the first two quarters of this year.
So, for now …
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., 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.
