China's Back! Here's What it Means for Your Portfolio

by Andrew Zatlin March 07, 2023 1:00 pm ET

Remember America's "return to normal"?

Now it's China's turn. And this country's resurgence will undoubtedly create a massive economic wave.

Today, I'll show you how to ride this wave to enormous profits.

For a transcript of this video, see below. This transcript has been lightly edited for length and clarity.

China's Back! Here's What it Means for Your Portfolio

By and large, the U.S. returned to normal last year. This year, it's China's turn.

China is lifting several Covid restrictions. And as a result, an economic wave is about to come roaring in.

Break out your surfing gear, because today I'll reveal three ways to ride this wave to potential profits.

Show Me the Money!

First things first, China isn't merely removing restrictions. It's pumping massive dollars into its economy.

Take a look at this chart:

This shows the amount of money the People's Bank of China has been pumping into its supply over the past several years. Notice the most recent upswing – it's the largest in almost two years.

China is serious about getting its economy up and running. The question is: How serious is it?

China's Growth Target

Over the weekend, China announced it's targeting 5% economic growth – higher than last year's 3% but not quite as high as in years past, when growth reached 6% or 7%.

In other words, China's rebound isn't going to happen all at once, but rest assured that even a partial return to normal means a wealth of investment opportunities – like these three, for example...

Tourists Are Coming

First, focus on the travel industry.

About 110 million Chinese tourists will soon travel, many to the U.S. – Viva Las Vegas, anyone? – and Europe. Chinese airlines have already requested the resumption of 700 international flights per week. So we're about to see quite the boom when it comes to Chinese tourism.

Factories Back Online

Next, look at manufacturing. With restrictions over, Chinese factories are going to reemerge. And that will mean even more breakthroughs with respect to supply chain issues.

As an example, we still see bottlenecks in the supply chain when it comes to autos. But China's return should correct these issues and open the floodgates.

Meanwhile, as manufacturing takes off, shipping demand will, too. We're going to see big demand for truckers and rail cars to move this sudden surge of shipments.

Finally...

Don't Forget About Oil

Pay attention to commodities. Chinese factories will soon boom, and they're going to require a lot of metals and oils.

This is where things get interesting. Let me show you:

This chart shows China's oil imports. As you can see, import levels were going up, up, up until Covid struck. But this year, oil imports are projected to be the highest on record – even higher than 2020.

Make no mistake: China's oil demand was down 5% a year ago and is set to rebound significantly, which will have an impact on oil prices around the globe, including right here in the U.S.

If you recall, to keep oil from getting out of control during the Russia-Ukraine war, the U.S. depleted its stock of reserve oil:

Essentially, America flooded the supply so prices didn't go up. Right now, prices have stabilized, and the U.S. is starting to refill its reserves (as shown above).

Combine that with China's resurgence, and demand for oil is about to soar.

A Trio of Opportunities

Let's recap: China is getting back to normal. And that presents plenty of investment opportunities.

For my money, I'm looking at sectors like travel, manufacturing, and commodities.

And within one of these sectors is a company I expect will soon deliver returns that demolish the S&P 500. Intrigued? I'm only revealing the details to my "Pro" subscribers, so make sure you're one of them.

In the meantime, we're in it to win it. Zatlin out.