Hundreds of Billions of Dollars Are About to Flow Into Chinese Stocks

By: DailyWealth

Steve Sjuggerud writes: China will ultimately make up 50% of one of the world's major emerging-markets indexes...

"Who cares," you might think, at first...

YOU ought to care...

You see, hundreds of billions of dollars will flow into Chinese stocks in the next two or three years...

That's because trillions of dollars are invested based on what's in these major stock indexes... If the index dramatically increases its stake in China, then index-based investors will have to move money into China. The amount of money moving in, ultimately, will be in the hundreds of billions of dollars.

For the specifics...

This week, FTSE Russell (one of two leading providers of international stock market indexes) announced big changes to its emerging-markets index. It plans to dramatically increase China's percentages over the next two to three years.

According to a Reuters news story, the new FTSE emerging-markets indexes "will have an initial weighting of 5 percent for China A shares. That will rise to 32 percent when the shares become fully available to international investors." That is a massive change!

"When taken together with other types of China shares, including those listed in Hong Kong, Chinese shares would then account for 50 percent of the emerging-markets index, said FTSE Russell. It has scheduled an update of its plans in September."

My paid subscribers have been profiting handsomely from my China ideas already...

We are up 112% in eight months on our main China stock recommendation. Now that China has soared so much, in the latest issue of my True Wealth letter I've shared the specifics of a surprising, lower-risk way to profit from all the money that will flow into China.

Regardless of how you're investing in China, this decision by FTSE Russell means hundreds of billions of dollars will flow into Chinese stocks.

So even though Chinese stocks are up a lot, your upside potential is still dramatic. Make sure you're on board...

Good investing,

http://www.dailywealth.com

The DailyWealth Investment Philosophy: In a nutshell, my investment philosophy is this: Buy things of extraordinary value at a time when nobody else wants them. Then sell when people are willing to pay any price. You see, at DailyWealth, we believe most investors take way too much risk. Our mission is to show you how to avoid risky investments, and how to avoid what the average investor is doing. I believe that you can make a lot of money – and do it safely – by simply doing the opposite of what is most popular.

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