A China/India Doubler

The greatest economic war the world has ever seen is headed your way, and there’s no stopping it. A major battle between China and India for control of U.S. financial markets is unfolding, and it’s about to affect everything you own for years to come.

Both countries desperately need America’s financial muscle in order to rise from Third-World sustenance to global economic superiority. This is why China all but tried to steal Unocal. And why India has all but locked up an all-important nuclear pact with the U.S. government. And why both countries were not only locked in a behind-the-scenes battle over NYSE-listed PetroKazakhstan but also for control of a number of strategic U.S. companies. Not just energy companies to fuel their burgeoning growth, mind you. But everything from financial services to manufacturing, pharmaceuticals to telecommunications.

Tragically, the financial media is totally blind to what’s going on. That’s because they tend to focus separately on the explosive growth in China and India and not the mammoth economic battle that’s brewing between them.

But you can see the battle brewing with your own eyes by simply skimming the back pages of the financial section.

There you’ll see, almost daily, dozens of Chinese and Indian companies slugging it out around the world. Trying to block each other’s progress by taking strategic interests in U.S. and other global companies in order to achieve economic superiority.

In fact, just last year Chinese computer maker Lenovo purchased the personal computer wing of IBM… while India’s software giant Wipro acquired U.S.-based consulting company Nerve Wire.

And there are dozens of other major calculated moves I could mention, like India’s Asian Electronics Ltd. purchase of U.S. Westinghouse Lighting Corp. or China’s CITIC Provident Management Ltd. offer to buy U.S.-based Colibri Group.

I want you to fully understand the far-reaching implications that are about to transform our country, our economy, and your future financial security.

Why You Can’t Afford to End Up on the Losing Side of This Economic Battle

In all my 25 years of covering Wall Street, I’ve never seen a greater shift in global growth than I see today. The U.S. trade imbalance that I’ve warned about for years is about to hit home.

And it’s about to crush the hopes and dreams of unwitting investors who fail to understand the situation that’s now unfolding.

Here’s why: The surplus dollars we’ve been sending both China and India finally have reached their pinnacle. And while the Chinese have plowed more than $700 billion back into U.S. Treasuries, they’re now looking for much, much higher returns.

The reason is simple: To block the explosive growth of India whose own thirst for energy is on pace to surpass China’s rapidly growing economy, thanks to India’s technological superiority.

For these reasons, both nations have their eyes on tapping top U.S. companies that can help fuel their own nations’ growth while preventing the other from scooping up prized natural resources and markets for their goods.

India and China, together, represent the largest and fastest growth markets in the world. Both are sucking up the world’s natural resources at a record pace to build infrastructure… while leveraging their multibillion-dollar U.S. trade imbalances and the weak dollar to block each other from grabbing strategic advantage.

Ultimately, the chain reaction will put powerful upward pressure under the stock prices of companies that own key positions vital to both nations’ inevitable growth.

And those in a less strategic position could see their stock prices collapse.

A handful of American lynchpin companies who dominate key strategic sectors in oil, technology, manufacturing and pharmaceuticals are going to reap almost obscene profits.

If you can invest in any of these companies now, you’ll look back from the year 2008 much richer than you ever imagined. Let me tell you about one right now.

Double Your Money With the Profit King of Global Growth

In the global battle royale between China and India, there is one commodity that will keep their 2 billion-person labor forces working.

Surprisingly, it’s not oil or energy—but food!

Remember, we’re not just talking about feeding a handful of people. Between
the two countries, we’re talking one-third of the people on the Earth!

As I write this, both countries face potential food shortages brought on by population growth, water shortages and smaller harvests. Ultimately, both countries have already turned to the U.S. markets for grain and livestock. However, buying grain on the open market is simply a short-term fix that would never secure either of those countries food supplies. Like the old saying goes, "If you give man a fish, you feed him for a day. If you teach him how to fish, you feed him for life."

This is why a bigger opportunity lies in fertilizer. The reason is simple: Fertilizer is the crop booster that every nation needs to build its food reserves and food security.

Most investors don’t realize this, but over the past 12 months, world fertilizer production and trade of fertilizer products reached record levels, resulting in escalating prices for nearly all fertilizer products.

And it’s all because of the demand coming from China and India, where fertilizer imports are expected to mushroom in the coming years.

This is why if you take a small position in North America’s top fertilizer company now, I predict you could easily double your money in the next two years.

That’s a big claim, I know, but the fact is our top pick in this sector has already made investors 150% richer over the past 24 months and is now on track to repeat these gains with or without you.

Potash Corporation (POT) is by far the world’s leading producer of, not surprisingly, potash, which is commonly used as fertilizer. The company also produces nitrogen and phosphate for food products, detergents and feed products. Its annual production capacity of 12.5 million tons of potash represents about 25% of the world’s capacity.

Do you realize what this means?

That’s like having a 25% market share in one commodity that every human being on Earth needs to survive. Which is why the company is simply making money hand over fist from massive sales to China and India (and Africa)… and richly rewarding investors along the way. If you had invested $20,000 in this company two years ago you’d be sitting on $50,000. A $100,000 stake would now be worth $250,000. And it’s all because demand for fertilizer has increased its cost by 75% and the company has a locked-in 25% market share.

For these reasons, the company raised its 2005 earnings estimates. I could easily see this company hand you another 100% gains over the next 12 months.

How can I make such a claim? Because of their global leadership and achievements over the past 12 months. As a result, the stock not only is up 45% over the past 12 months but is also perfectly positioned to hand you double-digit returns in the months and years ahead.


Article printed from InvestorPlace Media, https://investorplace.com/2006/12/global_investing_051028/.

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