Who Will Be the Next Economic Superpower?

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Which country do you think will be the dominant economic superpower in the 21st century?

I ask this question a lot in my global investing seminars. The most popular answer is usually China, followed by the U.S., and India sometimes gets a few votes.

As we all know, anything can happen, but personally, I don’t think there will be a dominant economic superpower in the 21st century. The U.S. will probably continue to be the leading economic and military superpower in the world for the next 50 years. But in the following decades, I believe other economic powers will emerge, and Washington will have to share more power and responsibility with the likes of China and Russia. Increasing international cooperation between major powers will be necessary to effectively deal with global problems like terrorism, environmental pollution, infectious diseases and energy shortages.

This year in particular will probably be remembered as a turning point in the global economic balance of power. With the decline of the U.S. dollar and continuing housing/credit market woes, much of the rest of the world grew faster than the U.S in 2007. For the first time since the outbreak of World War I nearly 100 years ago, all of the European stock markets combined surpassed the U.S. in total market capitalization.

Eastern and central Europe, led by Russia, is growing much faster than Western Europe. Run by Vladimir Putin and several dozen multi-billionaire oligarchs, the Russian economy is riding high on a global energy and commodities boom. Thanks to higher global commodity prices, Russia’s GDP has already hit the $1 trillion mark. Two decades ago, the concept of Russia becoming a major plutocracy (or a government in which the wealthy class rules) was unimaginable, yet it has now become a reality.

In Asia, China may have just surpassed Germany to become the third-largest economic power in the world after the U.S. and Japan—but the official news probably won’t be released for a few months. In terms of stock market capitalization, China (the Mainland and Hong Kong) has already surpassed Japan to become number-two in the world. China’s GDP growth this year is more than 11%, reaching $3.27 trillion. At its current rate of growth, China will overtake Japan by 2011. Even if there is a recession in the U.S. next year, China’s GDP growth in 2008 is likely to remain above 8%. Two commodity powerhouses, Brazil and Canada, also have $1 trillion economies for the first time ever. And India’s GDP is looking to hit $1 trillion by 2010.

For much of the second half of the 20th century, the U.S. accounted for more than 40%—sometimes approaching 50%—of the world’s total economic production. In other words, the U.S. economy was almost as big as the rest of the world combined. In the past five years, however, a 38% decline in the U.S. dollar and the superior growth of newly-emerging economies is changing the global distribution of economic power.

China and its neighbors, like Russia, Taiwan, South Korea, Singapore and Malaysia, will probably evolve into a new Asian economic bloc. It’s likely that this fast-growing region will become the new global epicenter of wealth creation in the 21st century. There will be many investment opportunities throughout the region that are shielded from the economic problems of the U.S. The stocks in our China Strategy portfolio fall into this category—many of them are already trading higher than they were before the November sell-off. Do you want to own companies that bounce back quickly?  Click here to learn more.

Get Ahead of the Curve

Establishing positions in successful, well-run Chinese companies trading here in the U.S. could be the smartest move you make in the coming decade. If you get in now, not only will you benefit from the strength of the companies you own, but you’ll also profit from increased demand as millions of investors start scrambling for global investment opportunities in the coming months.

I’m not predicting the collapse of the U.S. economy or our markets—there will be companies that will provide solid, wealth-creating opportunities here as well—but for the bulk of your portfolio, I suggest you get in ahead of the crowd and start making money in China now.

The portfolio in my China Strategy service currently lists 21 companies that you can buy now. Of these 21 stocks, four of them have gained more than 200% for my subscribers so far. Another four stocks are up over 135%, and we have five other holdings that have posted profits of more than 50%. And I believe there is still more upside to come! But you must hurry and establish positions soon, or else the next wave of profits might pass you by. Join me risk-free right now and I’ll give you immediate access to my complete China Strategy portfolio. Plus, I’ll give you my personal insights into what’s happening in China, firsthand research and accounts of my travels, and much more. Take advantage of everything that China has to offer by signing up today!

Profit Globally from China

When it comes to profiting from China’s incredible growth, some of the best opportunities aren’t even China-based! China’s emergence has created a ripple effect throughout the world—if you know where to look. In China Strategy, we have a diversified portfolio of holdings that contains more than just Chinese companies. Take a look at some of the regions that we’re invested in:

  • Brazil
  • Taiwan
  • Singapore

But no matter where they’re located, all of our companies have one thing in common—they’re profiting big-time from China’s scorching-hot economy. Our non-China-based companies are up an average of more than 60% so far. And they’ll continue to gain in 2008 as the U.S. economy slows.

Sign up for China Strategy and get instant access to the names of these companies. Plus, I’ll tell you how they’re benefiting from China’s growth. You’ll also get specific buy limits, weekly company updates and much more!

How many times have you slapped your forehead because you knew you should have gotten into a company or an industry earlier, but you waited and missed the boat? Don’t let that happen again. Your chance is now. Sign up for China Strategy today and get the names of 21 companies you can start buying right away. With a risk-free, money-back guaranteed subscription, you have nothing to lose and so much to gain!


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