Should you buy China now?

That’s not an easy question to answer, but the risk-reward ratio is on your side for this trade.

Let me explain…

Recent events in China associated with its strict COVID-19 lockdowns have taken an unexpected turn.

Make no mistake, China is a command economy and a dictatorship. But, in the higher echelons of power, it is sensing things could be different this time.

You might be asking…

“Could be different from what time, exactly?”

Well, the only comparison that comes to mind is the Tiananmen Square massacre in 1989.

The difference today is that the population is better educated, better informed and richer, and it has much better means of communication.

That last part is the most important.

You hear about Chinese censorship and the lack of news flow. Yet the events on the ground are tying the government’s hands.

Protests (some violent, some civil)… the ability to communicate outside China’s borders…

All these things are game changers. Plus the use of virtual private networks (VPNs) can easily circumvent the censored government propaganda.

That is why you are seeing scenes on the ground in major Chinese cities that are significant challenges to the government.

And it knows only two choices exist:

1. Another round of massacres a la Tiananmen Square
2. Some type of concession to lift the country out of its COVID funk.

For now, it has chosen the latter and is lifting some of the onerous laws and requirements. It’s even talking softly about a reopening of the country in the spring of 2023.

Recall what happened in the U.S. when the country reopened. The markets went to the moon. The same should happen in China if the country stays on this new track.

The downside is if it reverses course. That is the risk. But, from the looks of it, the rewards outweigh the risk, and that is why you need exposure to Chinese stocks now.

YOUR ACTION PLAN

In The War Room, we use a special strategy to give us low-risk exposure to China – the KraneShares CSI China Internet ETF (NYSE: KWEB). As you can see, the upside is not immaterial.

If you want to find out exactly how we are playing China, I invite you to join us in The War Room. We have a 77% win rate in 2022, and right now we’re guaranteeing members will receive 252 winning trades in their first 12 months of membership.

Click here to start trading along with us today.