Major New Surge in China!

I’m home on this beautiful Florida morning, but my mind is on China.

Despite the tragic earthquake, the overall economy is not being negatively impacted.

Quite the contrary, a major new growth phase is now under way, and I wanted to give you this brief heads up.

The big picture: Last year, China’s economy was growing about three times faster than ours — about 10% in China compared to 3.3% in the U.S.

Now, it’s growing seventeen times faster — nearly 11% in China vs. only 0.6% in the U.S.

And anyone who doubts the depth or longevity of this stark contrast need only scan the news that came out from both sides of the Pacific just this past week:

In the U.S., despite the Fed’s eight consecutive interest-rate cuts …

• Consumer confidence has just plunged to a 28-year low …

• Inflation expectations have soared to the highest levels since 1982, and …

• Single-family housing starts have cratered to the lowest level in 17 years.

Nor is this an easy fix. We have the massive burden of $49 trillion in credit market debt (according to the Fed), $50 trillion in contingency debts (according to the GAO), and $164 trillion in derivatives (according to the OCC). Meanwhile …

In China, despite a series of natural disasters …

• Retail sales have just skyrocketed 22%, the biggest surge since at least 1999 …

• Manufacturing has soared by as much as 58.4% …

• And with each day that passes, Beijing is adding an average of over $3 billion to its already-bulging $2.3 trillion cash hoard.

Nor is this a new phenomenon. The Chinese economy has grown by an average of 9.7% per year for 26 long years. At that rate, China’s economy doubles every 7.5 years and could surpass the U.S. as the world’s largest in just 15.

No wonder China’s stock market surged 371% in five years! And no wonder, after a sharp November-March correction, it’s starting to move back up again.

Our Asia specialist, Tony Sagami, just returned from China a short while ago. And with China stocks starting to take off again, he’s getting ready to rush back.

To us, he’s like the Indiana Jones of Asia stock hunting. So stay tuned. The opportunities he’s about to uncover will knock your socks off.

Good luck and God bless!

Martin

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