Your No. 1 Trade for the Week
If you’re tired of waiting for a trade deal between the U.S. and China to be finalized, we have some bad news…
You’re going to have to keep waiting at least a little while longer.
Every Monday brings us “nearer” and “closer” to a deal, according to U.S. and Chinese officials along with their mainstream media counterparts.
And each Friday after markets close we say, “Maybe next week, folks.”
After weeks and months of this, I have to admit I’m bored with the story, and when a trade deal is finally struck we may find out Wall Street is bored with it, too.
Sell the News, Sell the News
For as long as these trade talks have dragged along, when a deal is finally struck folks may just sell the news.
The spike many expect in stocks off a new trade agreement could never manifest. And folks already bored with the story will most likely flock to better opportunities.
Speaking of which…
These Are the Best Stocks in the World Right Now
The Shanghai Composite Index has gained a stunning 30% year to date.
Additionally, the U.S. fund tracking China’s mainland stock market, the X-Trackers Harvest CSI China A-Shares ETF (ASHR) has soared 40% over the same time frame!
Another good measure of Chinese mainland stocks is the Global X China Consumer ETF (CHIQ). This ETF is up over 33% on the year. Compare that with the S&P and Nasdaq Composite gains!
Chinese stocks are on fire in 2019. But why?
Money Inflows, Massive Inflows
Back in March I alerted my followers to the coming surge in Chinese stocks.
At the time I noted the largest keeper of global stock indexes, Morgan Stanley Capital International (MSCI), made the momentous decision in 2017 to add Chinese mainland stocks (known as A-Shares) to its popular MSCI Emerging Markets Index for the very first time.
There are trillions of dollars in global wealth tied to this index, so when MSCI makes a move, index-tracking investors must buy — and buy they did!
The best news is this could only be the tip of the iceberg for Chinese stocks.
And while we’re stuck here waiting for a new deal to get inked…
Consider booking some serious cash with Chinese A-Shares and ETFs, like the X-Trackers Harvest CSI China A-Shares ETF (ASHR) or Global X China Consumer ETF (CHIQ).
These stocks are world-beaters right now.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch