China will lead the world out of this economic slowdown, and the money to be made by investors is beyond your wildest dreams.
Three reasons China will explode: (1) They have no debt and a $3 trillion surplus. (2) They consider 6 percent growth to be a recession for their country. (3) Most important, China’s government puts China first.
One more thing: The Fed just bought up a huge amount of our debt to guarantee that the $3 trillion the Chinese hold will be worth enough to keep them from selling it.
With this move, the Chinese just graduated from emerging economy status to key world player. And that means it’s time for you to make some money.
First idea: China Life Insurance Company (symbol LFC). This is essentially a monopoly that is fully backed by the totalitarian regime in China, and protected from competition by the government. It has a 50 percent market share and has developed only about 10 percent of its potential.
Next idea: China Mobile Limited (symbol CHL). This company has more mobile-phone subscribers than we have people in the U.S. – 470 million. It grew its subscriber base by 6 million just last month. It has no debt, is swimming in cash, and is expected to add 7 million new subscribers per year.
The key to a successful China strategy is the inevitability of the play. Patience will be rewarded, but don’t get antsy if your investment doesn’t fly off the charts. Give it a three- to five-year horizon and you won’t be disappointed.