Your editor doesn’t own a mobile phone.
We haven’t for about four years.
And we don’t intend to own one either (although we do own a tablet computer).
So it came as a surprise to many that we decided to launch a technology investment advisory last year.
After all, what would a guy who doesn’t own a mobile phone know about technology?
But those people who questioned our move didn’t understand an important point. In order to understand the specifics of something, you need to understand the bigger trends.
And that’s exactly why we’re set to make another big move that will have even more people scratching their heads…
In Money Morning and at the recent World War D conference we mentioned that we’re focusing on three key investment opportunities:
- Technology
- Resources
- Emerging Markets
Our view is that as a speculator these markets should provide investors with some of the biggest investment opportunities over the next 20 years.
In a way, each of these markets has a similar profile. They are what we call ‘bounceback’ plays.
Three ‘bounceback’ plays for the next 20 years
But while they have a similar profile they are each at a different stage of progress.
The bounceback of technology stocks is already in full swing more than 14 years after the dot-com crash.
The resources bounceback has had a few false starts, but following the crashes of 2008 and 2011-2013 there is new life in the resource sector.
The final opportunity — emerging markets — is at a much earlier level. In fact, there’s the possibility that emerging markets could crash further before the real bounceback begins.
That’s possible. But with China’s market already down 62% since the 2007 peak, our bet is that the worst has already happened.
For that reason we’ve decided it’s time to do what all real contrarian investors should do — spot an opportunity and then attack it with force.
In this instance, it’s time for contrarian investors (heck, any type of investor) to look at what could be one of the biggest generational investment opportunities seen in decades.
We’re talking about emerging markets generally, and China specifically.
One of the few Aussie analysts to tip these stocks
That brings us back to the point we made at the top of this letter.
Although your editor doesn’t own a mobile phone we aren’t a technology Luddite. In fact, we spent several years in the IT sector during the turn of the century as the tech boom took hold.
We saw plenty of exciting things at the time. We also saw plenty of things that made us scratch our head…thinking back on it now, we still can’t believe some of the things that went on (such as telcos delivering many tens of fibre optic lines to the spare bedrooms of suburban houses as anyone thought they could become an ISP back then).
But the fact is, you don’t need to be an expert in something to identify a trend. Social networking is another example. Personally, we find the whole concept shallow and ridiculous. But that doesn’t mean we can’t see the opportunity.
That’s why your editor was one of the few analysts in Australia who said that investors should buy into Facebook [NASDAQ:FB] and Twitter [NASDAQ:TWTR].
The same thing goes for an exciting new project we’re working on right now.
Investing can be terribly frustrating if you’re someone who likes to invest in big trends. The problem is that not everyone can see those trends as clearly as you.
Take for example the recent sell-off in emerging markets. Three major events drove the sell-off: Argentina’s potential to default, Russia’s potential to invade Ukraine, and China’s potentially slowing economy.
It was frustrating as an analyst because we didn’t have the necessary vehicle or the expertise to give you advice on which markets to buy right now. And we’re sure as an investor it was frustrating for you that there was no one to give you that advice.
Well, that’s about to change.
A unique analyst for a unique project
At the recent World War D conference we floated the idea of an investment advisory focusing on emerging markets to our most select group of subscribers — Alliance Members.
Based on the reaction it was an idea that drew a lot of interest. That’s fortunate, because we had already set the wheels in motion to develop a new investment advisory that would focus entirely on emerging markets.
And as you can expect, seeing as the emerging markets sector is dominated by one economy, it’s natural that this service will have a big focus on that one economy — China.
For years you’ve read and heard a lot about the Chinese economy. But most of what you’ve read and heard has come from ‘outsiders’. But in order to provide genuinely useful and unique advice we felt you should only take advice from an ‘insider’.
We can see the big picture on China and other emerging markets. Our view is that this is one of those rare generational investing opportunities…one of the few chances you’ll get in your lifetime to bet on something that could change the course of history.
But what we’re happy to admit is that we aren’t an expert on China or Chinese companies. And so, just as we hired a tech expert to help launch Revolutionary Tech Investor last year, we’ve now hired a China expert to help launch an exciting new project.
You’ll find out more in the coming weeks as the project gains momentum. But the first thing we need to do is to introduce you to the emerging markets analyst who will help guide you through the political, cultural, social and business life of China.
His name is Ken Wangdong. He grew up in China before moving to Sydney. He then moved back to China and Hong Kong where he has spent years immersed in China’s business world.
This will give Ken the kind of view that no other analyst in Australia can give you. Importantly, it will help him provide guidance on the investment opportunities in this remarkable country.
Look out for Ken as he becomes a regular in Money Morning. You’ll get to read his first contribution on Monday — and we can assure you, it will be like nothing you’ve ever read from a mainstream analyst on China.
Enjoy the long weekend.
Cheers,
Kris+
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