In Search of the Next China
World’s Next Great Emerging-Market Growth Machine
Dear Fellow Investor,
For the past quarter-century, China’s growth has been without peer.
Since 1989, China’s economy has expanded by an average of more than 9% a year—nearly five times the growth of the U.S. economy. No other economy even comes close. During this unparalleled boom, China has been a great place to invest.
During the nearly two decades beginning in 1996, the Shanghai Stock Exchange has increased in value by more than 600%, more than double the roughly 250% return in the S&P 500 over that same span.
But here’s the thing: China’s greatest period of growth is behind it. GDP growth has slowed to a “mere” 7% per year, and the Shanghai Stock Exchange has been in free fall since June. That doesn’t mean China is a lost cause for investors. Eventually, things will stabilize in China, and there will be attractive opportunities to reap major profits again. For now, though, there are simply greater emerging-market opportunities out there.
Finding the Next China
That’s why we at Cabot Investing Advice are giving our award-winning emerging markets advisory a makeover. Our emerging-markets advisory has been called the Cabot China & Emerging Markets Report. With China leading the way, the Cabot China & Emerging Markets Report has netted longtime subscribers some serious returns over the years.
- +150% in VipShop Holdings (VIPS)
- +111% in Qihoo 360 (QIHU)
- +93% in BitAuto (BITA)
- +87% in Baidu (BIDU)
- +120% Focus Media (FMCN)
- +180% Ctrip.com (CTRP)
- +149% China Aluminum (ACH)
- +102% Vimpelcom (VIP)
- +103% Shanda Games (SNDA)
Those returns helped make the Cabot China & Emerging Markets Report the No. 1 rated stock advisory two years in a row by the Hulbert Financial Digest. Peter Brimelow at MarketWatch also took notice, saying, “Cabot’s China & Emerging Markets Report racked up one of the most remarkable performances ever recorded by the Hulbert Financial Digest.”
One way we have been able to achieve such consistently strong returns for our subscribers is by spotting the trends in emerging markets. And right now, things are trending in the wrong direction for China.
Thus, we are scrubbing the “China” part of our emerging-markets advisory and renaming it, simply, Cabot Emerging Markets Investor. It’s not because there won’t be future investment opportunities in China. There will be—and we will be there. It’s merely a recognition that there are other, stronger emerging-market opportunities out there right now.
The mission of Cabot Emerging Markets Investor will be to identify the next China — specifically, to find and recommend high-potential stocks in high-potential, under-recognized emerging markets. Those markets include India, Mexico, Turkey, Indonesia, Colombia and South Korea.
More than a decade ago, we were early on the scene in China and investors who followed our advice did quite well. Now everyone recognizes China’s strength and the country is no longer “emerging.”
But India is. I call it the “Giant-In-Waiting.”
With 7.5% GDP growth, and as much as 8.3% growth projected in 2016, India—not China—is now the fastest-growing major economy in the world. India’s stocks are rising accordingly: the Bombay Stock Exchange is up more than 43% in the last two years.
India isn’t alone. There are investment opportunities in Mexico, Indonesia, Turkey and Argentina, too.
There’s just one catch: I only recommend emerging-markets stocks that trade on U.S. exchanges, just like American stocks, and I usually rule out low-priced stocks. Yes, they’re tempting, but they’re not bought by the institutional investors who can drive prices up with big-volume purchases.
Even by limiting it to those choices, investing in emerging markets can be intimidating. You could spend weeks researching companies and trying to determine which ones are most likely to profit from advances in the world’s fastest-growing economies. OR, you could simply subscribe to my Cabot Emerging Markets Investor advisory and let me do the work for you.
I’ll even tell you how I do it.
I have developed a strict set of time-tested rules that I adhere to with unswerving discipline. I call it the SNaC System, which stands for Story, Numbers and Chart. Any stock I recommend has to be compelling in terms of:
- Story. It has to be a dominant player in a sector that has the potential to be a huge mass market.
- Numbers. Its fundamentals must include growing revenues and earnings, with profits that are accelerating faster than sales. Even better, it should have an increasing number of institutional investors on board, as their steady purchases drive up prices.
- Chart. A steady, sustained uptrend in momentum means that the stock is in demand, and bodes well for continued appreciation in price.
Once I identify the companies I’m going to recommend, I will tell you when to buy, when to hold, when to take profits, when to retreat into cash, and when to cut losses and sell. This is important, because selling can be the most difficult part of trading. Emotionally, investors find it very difficult to sell losing stocks in particular. But selling right is even more important than buying.
This is the same system that I’ve been using for more than a decade—the one that helped the Cabot China & Emerging Markets Report earn big returns for subscribers and rave reviews from industry experts.
Special Pricing and No Risk
By now, you’re probably wondering how much all this information costs. Well, it’s usually $377 for a one-year subscription, which easily pays for itself very quickly, even if you just invest in a few of my picks.
But for a limited time, because we have rebranded our emerging-markets advisory as the new Cabot Emerging Markets Investor, you can get the special introductory price of only $97. That’s 75% off the regular price of $377.
Think about that. $97 per year is only 27 cents a day. Less than a cup of coffee!
If you don’t make money in 60 days, I’ll refund every penny of your subscription cost. (After 60 days, you can still cancel any time and receive a full refund for the unused portion of your subscription.)
You’ll get all this:
- Review of the Market Environment, which includes trends and developments in all emerging markets, and their impact on the near-term future.
- New Stock Recommendations that meet our rigorous criteria. Our track record is proof of our success.
- Stock Updates on all our current recommendations. Each stock is listed individually, with the purchase date, purchase price, current price, profit, and rating to buy, sell or hold.
Plus, you’ll get:
- Email Alerts with important news or an urgent Buy or Sell message.
- A FREE subscription to Cabot Wealth Advisory, chock-full of Market stories and stock tips.
- 24/7 access to our private, subscribers-only web site, which includes trade updates, special reports and an archive of past issues.
- My personal email address, for any questions or comments you may have.
And your BONUS, my hot-off-the-presses special research report, Taking the Mystery Out of Emerging Markets Investing.
Profiting in a Changed Landscape
The emerging-markets landscape is changing. China’s best days are behind it. Brazil is going on seven years of zero or negative GDP growth. And Russia … well, does the name Vladimir Putin mean anything to you?
Still, huge profit opportunities abound in other emerging markets—the kind of profit opportunities that can be difficult to find by investing in U.S. stocks, especially when U.S. markets have encountered some sudden turbulence. It’s a chance to catch next-generation tech giants before they’re discovered in the United States, diversify your portfolio with some of the strongest foreign stocks, and do so without ever having to leave a U.S. exchange.
China has had quite a run these last 25 years. Investors who spotted the China trend early, like us, have cleaned up. No doubt, China’s run isn’t over. But its greatest growth period is in the rearview mirror.
Now it’s time to find the NEXT China. Economies around the world are improving in the wake of the global recession. Several of those economies have the potential to emerge the way China did over the past two-and-a-half decades.
Finding the next China won’t be easy. There’s a world of potential candidates out there—literally. Let us do the heavy lifting for you.
Subscribe to Cabot Emerging Markets Investor now and get in on the next big thing!
All for the low introductory price of just 27 cents a day—all of it 100% refundable if you aren’t absolutely thrilled with the money you’re making.
Analyst, Cabot Emerging Markets Investor
P.S. Don’t miss this opportunity to get in on the ground floor of the next China. Join today and you’ll also receive your free copy of a special report, Taking the Mystery Out of Emerging Markets Investing.Begin now.
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