Stansberry Research Goes to the NYSE
The China boom continues… More good news for Chinese stocks… Stansberry Research goes to the NYSE… Last call for tonight's big event…
Regular Digest readers know Chinese stocks are booming...
After dramatically underperforming their U.S. counterparts for most of last year, they have once again been leading to the upside.
The benchmark Shanghai Composite Index is up more than 32% so far in 2019. That's roughly double the gains in the benchmark S&P 500 Index here in the U.S.
Our colleague Steve Sjuggerud expects this strength to continue...
As you know, no one in our industry has been a more vocal China bull than Steve over the past few years. And as he often says, when Chinese stocks get going, they really get going. As he explained in our free DailyWealth e-letter earlier this month...
China isn't like other markets. It doesn't work by the same "rules."
If you look at the chart below, you'll see why. It shows that – five separate times – Chinese stocks have delivered triple-digit percentage gains within 24 months. Take a look...
In short, China is famous for huge booms and busts...
And Steve believes the latest boom is already underway...
China has been the best-performing market in the world so far this year. That makes it easy to assume the good times are already behind us. But they're not...
The Shanghai Composite is up 32% so far this year. But you haven't missed it.
History says we could see triple-digit gains over a period of two years – or even less.
Of course, it's too early to be absolutely certain...
But the latest economic news out of China this week suggests Steve is exactly right.
Yesterday morning, Stansberry NewsWire editor C. Scott Garliss highlighted data showing the Chinese economy is healthier than many analysts assumed. In particular, he noted the country's exports rose 14.2% in March, trouncing expectations of a 6.5% gain.
Moreover, China's Manufacturing Purchasing Managers' Index metric – which shows activity in the Chinese manufacturing sector – rose to 50.8 in March. That's the first increase in four months, and it's the strongest number since July 2018.
This morning, China's first-quarter gross domestic product ('GDP') data further strengthened the case...
As news service Reuters reported...
China's economy grew at a steady 6.4 percent pace in the first quarter, defying expectations for a further slowdown, as industrial production jumped sharply and consumer demand showed signs of improvement.
The upbeat readings, which included faster growth in investment, will add to optimism that China's economy may be starting to stabilize even as Beijing and Washington appear to be edging toward a trade deal...
Analysts polled by Reuters had expected GDP growth to slow slightly to 6.3 percent in January-March from a year earlier.
Speaking of Steve's China research...
Yesterday, we mentioned the Digest team was in New York City.
If you happened to be watching one of the financial-news networks around 4 p.m. Eastern time, you would've seen why...
Yes, that's Steve ringing the closing bell on the floor of New York Stock Exchange ("NYSE") on Tuesday.
We and several dozen of our lifetime Stansberry Alliance subscribers were there to celebrate a wonderful occasion with the folks at Krane Funds Advisors.
You see, yesterday's event marked the five-year anniversary of their KraneShares Bosera MSCI China A Fund (KBA) being listed on the NYSE...
Longtime readers should be familiar with this fund and how it fits into Steve's bullish China thesis...
In short, a landmark decision by global index provider MSCI will cause up to $1 trillion or more to flow into domestic Chinese stocks over the next several years.
As a result, these stocks – known as "A-shares" – are likely to soar, almost regardless of whatever else is going on in China or the global economy. (Of course, Steve says there are plenty of other bullish catalysts, too.)
Unfortunately, A-shares are difficult – if not impossible – for most Americans to buy...
Or rather, they were difficult to buy... until Jonathan Krane, Brendan Ahern, and their team stepped in. They launched KBA – one of the first (and best) China A-share exchange-traded funds in the U.S. – in 2014.
With KBA, investors have a simple and easy way to own the exact stocks that are likely to benefit from MSCI's decision. And it's long been Steve's favorite "one click" way to profit from this trend.
To be clear, neither Steve nor anyone else at Stansberry Research has been compensated by KraneShares. We're simply believers in its products and its mission to make Chinese markets accessible to every investor.
Congratulations to Jonathan, Brendan, and the rest of the KraneShares team on their well-deserved success.
However, KBA's anniversary wasn't the only reason we gathered at the NYSE...
Following the closing bell ceremony, Steve treated guests to a special, never-before-seen presentation.
Stay tuned... We're planning to share all the details with Digest readers soon.
One last note before we sign off tonight...
As you've likely heard by now, renowned former hedge-fund manager Whitney Tilson will be joining Porter for his first-ever Empire Investing Summit tonight. It all kicks off less than two hours from now at 8 p.m. Eastern time.
I've long admired Whitney's remarkable career. But unlike many of my colleagues – who consider Whitney a close personal friend – I only had the opportunity to speak with him on a few brief occasions.
Well, Whitney joined us for dinner after yesterday's event at the NYSE. And I can tell you that he is every bit as kind, generous, and humble as Porter described. This combination is rare in anyone, but it's all the more impressive in someone as brilliant and accomplished as Whitney. I'm pleased I can now call him a friend as well.
If you've been on the fence about attending tonight's free event, I hope you'll decide to join us. Even if you're not interested in Whitney's new service, I guarantee you'll walk away a smarter, better investor.
Again, the Empire Investing Summit kicks off less than two hours from now. Simply click here before 8 p.m. Eastern time to reserve your spot.
New 52-week highs (as of 4/15/19): Automatic Data Processing (ADP), Celgene (CELG), First Trust Nasdaq Cybersecurity Fund (CIBR), Cabot Oil & Gas (COG), Disney (DIS), Fortinet (FTNT), Hershey (HSY), McDonald's (MCD), MarketAxess (MKTX), Microsoft (MSFT), Match Group (MTCH), O'Reilly Automotive (ORLY), PepsiCo (PEP), Procter & Gamble (PG), Rollins (ROL), and, T-Mobile (TMUS).
A longtime Stansberry Alliance member shares his thoughts on yesterday's NYSE event. As always, send your notes to feedback@stansberryresearch.com.
"Once again, Stansberry delivers on the Alliance Membership! The opportunity to be on the floor of the closing bell of the NYSE was a 'bucket list' item for me and, because of my Alliance Membership, that one is checked off! What an experience! First class all the way, as we have only come to expect from Stansberry Research. The opportunity to be on the floor for the closing bell was a smooth, well-coordinated event. Meeting and connecting with editors (Sjug, Doc, Brill, Carroll, Eversole), as well as meeting and re-connecting with other like-minded Alliance members. When we see each other once or twice a year it is amazing how fast the faces and names come together, forming life-long friendships. Like the Alliance Conference, Stansberry is always delivering to its Alliance partners. My Alliance Membership is by far the best investment I have ever made. Thank you!" – Paid-up Stansberry Alliance member Justin F.
Regards,
Justin Brill
Baltimore, Maryland
April 17, 2019