'The Best Long-Term Opportunity in the World Today'

Get your questions answered tonight... Porter's team responds to a notorious short seller... The best-performing stocks of the year might surprise you... Another great call by Sjug... 'The single best long-term opportunity in the world today'... Mailbag: One of the most common (and important) questions we receive...

We begin tonight with a reminder...

In less than two hours, Porter will be unveiling all the details on his "10x Project" research.

As we noted yesterday, this research has uncovered a strategy that sounds almost too good to be true: a way to turn our best ideas – safe, simple investments in high-quality stocks – into absolute home runs.

Investors who follow this strategy have a legitimate shot at earning up to 50% or more each year in regular, "plain vanilla" stocks. This kind of return can build life-changing, long-term wealth. And it doesn't require using leverage, options, or anything risky.

Again, Porter will be explaining exactly how it all works – step by step – live "on air" tonight. Attendance is absolutely free for Stansberry Research readers, and there are no strings attached... Simply go to www.stansberrylive.com a few minutes before 8 p.m. Eastern time to test your connection. We can't wait to see you there.

Stansberry's Investment Advisory holding Northern Dynasty (NAK) fell sharply yesterday...

Shares of the tiny gold miner plunged more than 20% following a scathing report from investment firm Kerrisdale Capital. Kerrisdale – which was short NAK shares when the report was published – alleged the company's massive Pebble gold and copper deposit was worth nothing... zero.

Porter and his team addressed this report in a special update for subscribers yesterday...

Because we received several questions from subscribers, we'd like to share some highlights from the update with Digest readers today.

In short, Porter's team studied the report and were on Kerrisdale's Tuesday conference call. They believe the firm's allegations are inaccurate at best... intentionally misleading at worst. From the update...

Kerrisdale offered no new technical or scientific evidence. On the call, they labeled themselves as market generalists with no background in the mining industry. They made vague references to engineers, but would not disclose their names or credentials.

One of their main arguments is that mining giant Anglo American and other large miners walked away from the project because Northern Dynasty's resource is worth nothing. We disagree.

Anglo, a major London-based miner, didn't pour more than $500 million into a project that it thought was worthless. On the contrary, a half-billion-dollar-plus investment requires dozens of qualified experts with estimates of massive potential. The large investment demonstrates the potential Anglo saw in Northern Dynasty.

Kerrisdale claims Anglo walked away because they thought the mine was worthless. But they offer no evidence or contact at Anglo for this position. The fact is, only Anglo's management knows why they pulled out of Pebble...

We suspect Anglo's tenuous financial position at the time, coupled with a declining gold price and low prospects of regulatory approval under the previous government administration were taken into consideration in their decision process. As far as we know, neither Anglo nor any other major mining company has ever stated that Pebble has no potential... as Kerrisdale is claiming.

As Porter's team noted, the firm wasn't denying that Pebble is the largest undeveloped gold and copper resource in the world...

It is simply claiming it will never be economically or technologically feasible to mine. Yet they believe this argument is flawed. More from the update...

There is no doubt that Pebble will require billions of dollars to develop. But with 70 million ounces of gold, 344 million ounces of silver, and 57 billion pounds of copper measured and indicated in the ground, those capital requirements don't seem so daunting... A $100-per-ounce increase in the price of gold alone raises the project's value by $7 billion... completely changing the picture of high development costs. And while Pebble is a massive low-grade deposit, it's possible to mine it with cheaper "open pit" techniques...

Kerrisdale claims that the technology to conduct environmentally safe operations at Pebble does not exist. They gloss over the fact that similar massive mining operations are being carried out around the globe daily. And they disregard a plan that Northern Dynasty spent $150 million developing with the help of over 500 scientists and technicians to make mining possible... and without damaging the Bristol Bay.

Finally, Kerrisdale disregards what a Trump Environmental Protection Agency (EPA) might say on Pebble. Let us say this... having the president and EPA opposed to granting a permit is not conducive to investment. The fact is, the previous administration placed roadblocks on Pebble. We expect that will change under the Trump Administration.

Kerrisdale argues many politicians and environmentalists worried about Bristol Bay are still opposed and the permitting process will take years to complete. On this, we agree. But we never invested in Northern Dynasty based on the company actually developing an operating mine...

We recommended Northern Dynasty as a speculation that the regulatory roadblocks would go away, so that a mine is at least feasible. And we recommended Northern Dynasty because of its massive resource, giving us tremendous leverage on a rising gold price. When gold prices go up, the value of the metals in the ground also goes up, whether they are being mined or not.

They also note that when Kerrisdale analysts were pressed for details on the conference call, they stated they have no hard facts to back up these claims, merely opinion. And the firm is clearly biased...

By holding a short position on the stock, they make money as Northern Dynasty's stock falls. Kerrisdale's timing on the release of the report is suspicious – coming days after the stock reached a 52-week high.

On the other hand, Stansberry Research has no financial interest in Northern Dynasty's stock price. We provide independent and objective research, report our findings, and make our recommendation. As a subscriber, you will always get our honest opinion.

Perhaps most damning, Kerrisdale itself has a less than stellar track record...

As Porter's team noted, the firm's manager is notorious on Wall Street for bad calls and bad judgment...

He's been famously wrong about a major bet to short shares of DISH Network, and last summer he was arrested for DUI and cocaine possession after a serious car wreck that injured another driver.

His method of doing business – to short a stock and then use social media to bash the business – is, at best, questionable. We have nothing against short sellers. In fact, we recommend shorting stocks frequently when we have serious doubts about their balance sheets, their businesses models, or their accounting practices. We express our doubts objectively (not after we've made a big investment) with careful research and facts – not hyperbole and conjecture.

We think investors should be very skeptical of investment research that's published by any entity whose business depends on promoting a position (long or short) after establishing one – whether it's a hedge fund manager with a history of drug abuse or an established industry titan. The fact is that having a bunch of money on the line (like Bill Ackman with Herbalife) tends to warp investors' judgement.

Elsewhere in the market, we note some of the year's best-performing stocks are from a country many thought would have a terrible year...

The Wall Street Journal reports Chinese stocks – as represented by the MSCI China Index of large- and mid-cap companies – are up more than 12% year to date.

This makes Chinese stocks the best-performing stocks in Asia... and among the best-performing stocks in the world so far this year (behind only those of fellow emerging markets Argentina and Brazil). And as you can see in the following chart, Chinese stocks have more than doubled the year-to-date return of the benchmark S&P 500 Index here in the U.S....

This performance has come as a surprise to those who believed the prospect of Donald Trump's protectionist policies would push shares lower. But that hasn't been the case... After selling off initially, Chinese stocks have completely reversed their post-election declines. From the Journal...

Instead of worrying about protectionism, fund managers have focused on healthier Chinese corporate earnings and stable economic data, which have alleviated worries the country's economy could suffer a hard landing. "China has had three pretty bad years and now it looks like in 2017 it will finally be over," said Arnout van Rijn, chief investment officer for Asia-Pacific at fund manager Robeco

Earnings per share for companies in the Hang Seng China Enterprises Index, a gauge of Chinese companies with listings in Hong Kong, had dropped for the past two years but are expected to rebound by 7.84% this year and a similar magnitude next year.

"We're seeing stronger earnings growth this year," says Gao Ting, head of China strategy at UBS Securities. "That has a lot to do with reflation in the materials and mining sectors," he says.

The Journal also notes that despite the recent rally, Chinese stocks remain cheap. The MSCI China Index is still trading at just 12.5 times earnings, compared with 17.8 times earnings for the S&P 500.

One analyst who wasn't surprised by the big rebound in Chinese shares is our own Steve Sjuggerud...

In fact, Steve is so bullish on China that he launched a brand-new service last fall dedicated entirely to it: True Wealth China Opportunities.

While Steve wasn't shocked to see Chinese shares sell off following Trump's victory, he remained incredibly bullish on his China Opportunities portfolio. As he explained to his subscribers following November's election...

It's scary out there. I get it. I've read your feedback. I've seen dozens of questions. And I know you're worried. The most common question we receive sounds something like this...

"Steve, Trump is going to crack down on trade with China. Our China stocks are falling after the election. So how can we make money? What gives?"

The answer is: We are barely investing in trade with China. We are investing inside China. Think about it... We own Chinese tech giants that serve the local people. We own banks and property companies, which again, serve the local people. And we're making the MSCI Road Map trade, which is about money flowing into local Chinese companies that will be added to an index, regardless of the president...

In short, our opportunity in China is as strong as ever.

So far, Steve has been exactly right...

And his True Wealth China Opportunities recommendations have done even better than the broad market this year.

Nearly every position in his model portfolio is up year to date, for an average gain of more than 11%. But Steve believes much, much bigger gains lie ahead. As he explained in the latest issue of True Wealth China Opportunities published late last month...

Wow, what a month... Last month, I said you were doing "something extraordinary" by investing in China. Our returns since then have indeed been extraordinary. And this is likely just the beginning...

Chinese stocks have delivered triple-digit returns three separate times in the last dozen years. I expect we will see that again...

China is the single best long-term investment opportunity in the world today.

New 52-week highs (as of 2/14/17): Bank of China (3988.HK), Apple (AAPL), American Financial (AFG), American Express (AXP), Bancroft Fund (BCV), Berkshire Hathaway (BRK-B), CBRE Group (CBG), First Trust Nasdaq Cybersecurity Fund (CIBR), CommScope (COMM), Cisco Systems (CSCO), iShares Select Dividend Fund (DVY), WisdomTree Japan Hedged Equity Fund (DXJ), WisdomTree Japan Hedged SmallCap Equity Fund (DXJS), ProShares Ultra MSCI Emerging Markets Fund (EET), First Trust Emerging Markets Small Cap AlphaDex Fund (FEMS), Goodyear Tire & Rubber (GT), Huntington Ingalls Industries (HII), PureFunds ISE Mobile Payments Fund (IPAY), 3M (MMM), AllianzGI Equity & Convertible Income Fund (NIE), PNC Financial Warrants (PNC-WT), Global X Uranium Fund (URA), ProShares Ultra Financials Fund (UYG), and W.R. Berkley (WRB).

In today's mailbag, kudos for Doc's new issue... and one of the most common (and important) questions we get. Send your notes to feedback@stansberryresearch.com.

"Hi Doc, your [latest] Retirement Millionaire on 2/8 was one for the books. Your [detailed research on your newest recommendation] was perfect... It makes [me] want to really follow their future! Doc, I am long overdue to thank you for your excellent guidance of my career with investments. I can only thank my success to your professional teaching and support. Thank You!!" – Paid-up subscriber Frank H.

Brill comment: We couldn't agree more, Frank... Doc's February issue of Retirement Millionaire is a must-read. In it, Doc details a rare investment opportunity... One former "high-flying" tech company has quietly reinvented itself. It's now poised for massive growth in the years ahead... yet 99% of investors have no idea.

If you're not yet a Retirement Millionaire subscriber, you can get immediate access to Doc's latest issue with a 100% risk-free subscription. At just $199 for a full year, this one recommendation could pay for itself dozens of times over. Click here to sign up now.

"I am totally lost and have no idea what I'm the world I thought I could do this investing. Everyone wants so much money for their information that I don't have money to invest after I buy. I am sure I desperately need hand holding HELP." – Paid-up subscriber Cynthia B.

Brill comment: We understand learning how to invest for yourself can be overwhelming. But we also know that it has never been more important... The days of retiring comfortably on Social Security and a company pension are long gone for most people. If you don't take responsibility for your financial future, no one else will.

This is why we spend so much time writing about the basics of building wealth and investing... from the importance of disciplined saving to proper risk-management strategies, like asset allocation, position sizing, and trailing stop losses. And it's why we were thrilled to finally launch Stansberry Portfolio Solutions this month, our new product designed to allow even novices to easily invest like a professional.

But we also know some folks aren't yet in a position to take advantage of our top-tier research. However, that doesn't mean you're out of luck. Each of our three "entry-level" services – Porter's Investment Advisory, Steve Sjuggerud's True Wealth, and Doc's Retirement Millionaire (mentioned above) – have earned readers double-digit annualized returns over the last decade. That's better than many expensive hedge funds can claim... And at just $199 per year, each is affordable for any investor.

If you're struggling to make sense of investing, here's our suggestion: Sign up for one or more of these services. Review all the introductory letters, special reports, and training materials that come with your subscription. Check out the free Education Center on our website, which even includes a glossary of investment terms. And of course, continue to read the Stansberry Digest – particularly Porter's Friday Digests, where he explains many of these ideas in detail.

As Porter often says, "There is no teaching, only learning." It will take some effort on your part... But if you follow these steps, you may be surprised how quickly these ideas begin to make sense.

Regards,

Justin Brill
Baltimore, Maryland
February 15, 2017