Whenever you hear them say the word "Tariffs", you call your broker, or open your brokerage account, and you buy more stocks, particularly the Chinese ones.
And who is "they" exactly?
You know who "they" is. Mostly the noisemakers. People who produce tv shows about "trading", or write "news" articles about financial markets. Permabears looking for their next excuse to make poor decisions...
You know, they!
"They" are the ones we want to fade.
"We" are the ones who we want to make money.
And so every time they tell you the stock market is going to fall because of something they call "Tariffs", we just buy more stocks betting that stocks will rise in price (because or despite these so called, "Tariffs").
So far this is working. China doubled the returns of the Nasdaq100 in January, with the $FXI returning 4.7% last month. Meanwhile, the Chinese Internet ETF $KWEB rallied almost 7% for January.
As a reminder, we are in the midst of a bullish momentum thrust regime for Chinese stocks, so this shouldn't be surprising.
That momentum thrust, that consistently shows up near the beginning of new uptrends (NOT near the end), came in late September.
If you recall, this was the greatest week in the history of Chinese Equities.
Here's what that looked like:
Late September also saw the greatest 2-day period in the history of Chinese stocks, as well as the greatest week relative to Japanese and U.S. equities of all time.
These momentum thrusts certainly add up when you go and count them all.
And the rotation we're seeing is real, especially among emerging market stocks.
Look at the money coming out of India, the former leader, and into China, the new leader:
This week was our Portfolio Accelerator event in New York City.
We had our whole crew fly in for a few days of idea generation and brainstorming. Our VIP Portfolio Accelerator Members were also there (you can apply here).
And, of course, it's New York City, so we had some friends swing by to say hello.
Maybe the most interesting discussion from any of our special guests was our conversation with Dan Ives.
When it comes to all things Technology and AI, he's the one I go to.
He absolutely loved our new FANGhai Composite Index, which is our version of the Magnificent 7 for China.
Here's us, with Dan repping one of his classic colorful outfits!
Dan was only there with us for about an hour, but I feel like we covered a year's worth of material.
He thinks this is just the beginning of this AI revolution and there's a lot more time left in this cycle.
A good example of that is in shares of Xiaomi, breaking out of this multi-year base. We think about this one as the "Apple of China".
And there's a lot more where this came from.
It's not just Xiaomi. It's the rest of the Mag 7 of China, and others down the cap scale.
What does this all mean for your portfolio? We need to talk about it…
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