Game Over, China Wins

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It feels like every day we hear about the economic strangling potential of trade wars.

America, the world’s most powerful country, is doing everything it can to remain the world’s superpower.

But what implications do these trade wars have on China?

You see, while America wants to cripple the Chinese economy, I believe it’s having the completely opposite effect.

Which is why, in today’s Profit Watch, I want to delve into this a little deeper.

Here’s a hint to the conclusion: What I’ve found reaffirms my long-term bullish stance on China.

You can hear all about this in your Profit Watch video below. Yep, I said video. I have a special update for you today.

But first, let’s wrap up this week.

On Monday, Callum highlighted an array of ideas which could cause the Australian property market to take off. Yes, you read that right — move over, bears. You see, it has to do with the Australian government’s plans to act as a guarantor to new home buyers. Just when you thought we had seen it all…

On Tuesday, Callum highlighted the recent surge in bitcoin. You see, Callum believes that the end of the FAANG trade is close. And given the additional market uncertainty over the last several weeks, investors appear to be looking for new places to store their cash. And can you guess where they may be heading?

On Wednesday, Callum brought back the idea of the great Aussie mining boom. And it’s showing up in both commodity prices and in company profits. For example, back in January, iron ore was US$72 a tonne. Now it’s around US$95 a tonne. Fortescue Metals chief Andrew Forrest will bank $1 billion in dividends this financial year. A billion! Who says you can’t make money in the market right now?

On Thursday, Callum shot down a market commentator who blamed Australia’s high housing prices on constructions costs. That claim is absurd. Australian housing is ridiculously expensive because of the high cost of land. This is exacerbated by investors chasing the economic ‘free lunch’ you can get from owning property. It’s what shrewd investors also chase in the share market, too. Callum reveals one such opportunity right here for you.

Then on Friday, Callum brought an interesting article to light. How does flying across town sound to you? He outlined the developing story of flying taxis. It’s incredibly interesting. What I found most appealing is that this industry could be worth more than US$1.5 trillion over time. It’s a reason to be excited about the future!

Well, that’s the wrap-up for this week. Now let’s get back to this weekend’s story.

As I said above, it’s a video. Click here to watch it. I explain why it’s not a time to be overtly negative about China.

Australia's Next Great Boom

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And, please, do me a favour. Send any feedback you have to customerservice@agorafinancial.com.au.

Have a great weekend and I’ll catch you next week!

Until then,

Jim Rickards Signature

Jonathan Evans,
Analyst, Profit Watch


How to find 2019's biggest stock market winners

Small-cap stocks are the most exciting stocks on the ASX. But they’re also the riskiest. In this free guide our small-stock expert, Callum Newman, reveals seven things he believes every investor should know before risking any money. Plus, get a free subscription to Australia’s newest, most forward-looking daily investment email, Profit Watch. Enter your email address below and click ‘Send Me My FREE Report’.

We will collect and handle your personal information in accordance with our Privacy Policy. You can cancel your subscription at any time. Read our FAQ