“Chinese stocks have the potential to deliver triple-digit gains within 24 months,” I said on CNBC earlier this month.
So far, so good…
Since I appeared on CNBC, local Chinese stocks are up 8%.
There’s plenty more to come, as the Chinese stock market is getting a massive tailwind from the Chinese government…
[ad#Google Adsense 336×280-IA]On Friday, China announced that it lowered interest rates for the first time since 2012.
This is great news… lower interest rates add more fuel to the fire in China’s stock market.
This is exactly what’s happened in the U.S. over the past few years (what I’ve called the “Bernanke Asset Bubble”).
Now China is following suit, cutting interest rates and boosting asset prices in the process.
Also, last week China launched the Shanghai-Hong Kong Stock Connect. In short, this gives more foreigners than ever the ability to buy local Chinese stocks.
In addition, the Chinese government has been on a public-relations campaign to pump up the stock market.
Three weeks ago in DailyWealth, I called China “The Best Market for 100% Gains Now.”
I showed how China is cheap, hated, and now in an uptrend. I explained how Chinese shares have soared by more than 100% twice in the last decade… including a 500% gain from 2005 to 2007.
I hope you’ve taken advantage of my advice to buy China…
Chinese stocks bottomed this year at around 2,000 on the Shanghai Index. Now the index sits closer to 2,500. That’s a 25% gain so far.
In my opinion, the fun is not nearly over, yet. Chinese stocks are still cheap. Most global investors have ignored China (up until the last week or so), and the uptrend is in place.
Most importantly, the Chinese government just cut interest rates… Taking a page from Bernanke’s playbook and boosting Chinese stock prices.
Yes, you missed out on the first 25% here… But this is just the first part of a massive, triple-digit percentage move in China.
My True Wealth subscribers are up in my recommended China-stock fund, ASHR.
If you haven’t bought it yet, I urge you to consider it…
Good investing,
Steve
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Source: Daily Wealth