When England was busy conquering the world and engaging in wars, America was focusing on science and technology. Before England could realize it, America became the most powerful country in the world. After the 1970’s English government had no choice but to become an allay to the USA. History repeated itself. During the early 1990s when America was busy targeting gulf countries for oil, China was building its infrastructure with the objective to become the next leader in science and technology in the world. Both these countries have gone too far in their respective paths. One is for the good, the other one for the worst, and both have reached a point of no return.
China has proved its capability in leading the world in science and technology. America could do nothing more than ban Chinese companies in its public market. Pathetic isn’t it? This is how countries panic at the start of their downfall
Huwaie possibly could have been the biggest tech company in the world; even bigger than Apple. The US government has tried to slow its growth. America has done the same with other Chinese companies as well. Perhaps they can slow down the growth of these companies, But I doubt that they can’t do much more damage than that. These companies are big with or without investment from US investors. But remember, the world will always go along with the powerful countries. China is focusing more on building its relationships with the world, targeting small and medium sized countries all around the globe now. They will win this trade war for sure and will become the most powerful country.That’s what history has taught us.
So why this information is important to a retail investor?
Well, do you remember that I was talking about investing in Chinese companies, particularly Chinese tech companies, earlier this month?
It is because I believe this is high time to consider that. America cannot ban all Chinese companies at once as there is a law system in place. There won’t be any solid evidence to prove against these companies. The maximum damage that they can do is creating panic among investors and too won’t be last for long. How I am saying it for sure? Well, that’s what history taught us.
Now, this is the call:
If you are high risk, high-return, long-term growth stock investor, I would highly recommend considering investing in Chinese stocks at this time. You can invest in the US market or Hong Kong market. Either way, you won’t be disappointed.
A quick trading summary from yesterday:
Both $EH, $LKCO posted good moves yesterday.
$LKCO was included in Russell global index. That is a big step.
$NIO exhibited some positive moves too. They are planning to double their production, which is very good news. Now you can think about chip shortage for EV vehicles around the globe. I will write about that too. Maybe in a future post.
See below for the full list of chinese stocks in our watchlist.