Chris Rowe

Two China Growth Stocks the Experts Missed

by Chris Rowe   11/26/08

Here's an offer you can't refuse … there are two Chinese stocks that can make you rich over the long-term and I'm going to give them to you, no strings attached. Consider this as the time when I race to the highest rooftop and shout out the winning lottery numbers.

However, 99% of you won't listen! Don't be one of them.

From mid-September through mid-October, we witnessed what was nothing short of the worst 30 days in global stock market history, with both the U.S. markets and Asian markets losing 25%-30% of their values. People are saying this is the worst market we have ever seen, second only to 1931.

Perhaps part of the reason the market took such a beating is analysts' suggestions that this could be a mirror image to the economy of the 1930s. If you're a long-term buyer, that's an awesome assumption.

We are experiencing a massive global economic slowdown, sure. But, if played right (or just not played 100% wrong), this won't be anything like the Great Depression.

Change I Can Believe In

The good news is Barack Obama sounds like he won't be as aggressive in his tax hikes as he said he would be in order to get angry average Joes -- who don't understand the dangers in that -- to vote for him. I'm starting to like this guy more and more every day. The tax-hike talk scared the wits out of me.

Tax hikes helped bring the Great Depression to the forefront. The highest tax bracket was essentially doubled. The government even taxed citizens on every check they wrote!

At the same time, the Smoot-Hawley Tariff raised U.S. tariffs on more than 20,000 imported goods to record levels. The result was that many countries retaliated with their own increased tariffs on U.S. goods. That caused American imports to plunge by more than half and the export market subsequently collapsed.

Some fear that Obama would impose trade barriers that would have an effect that would knock us into similar territory, but personally, I have more confidence in his ability to understand the lessons of the past.

The bottom line is the market is trading as if we will go through the Great Depression, Part Two -- except that we won't. This is a long-term investors' dream.

If you are a long-term investor, you should buy stocks that are down by a heck of a lot more than they will be during the next five years. I have two Chinese stocks that are depressed but have huge long-term prospects.