I keep my eye on every part of the world. I’m a huge traveler, and whether I’m traveling for business or pleasure, you can be sure my eyes are pealed for the next big investment idea.
But one area I am a huge believe in right now is China. In fact, I have been bullish on China for a couple of years now.
I expect the trade issues between the U.S. and China to be settled sooner than later. I do not see President Trump letting the dispute continue into next November. If he can get something done in the first half of 2020, it will be one of his major talking points in the debates. Of course, he is one of the most unpredictable presidents, so there is always a possibility it drags on. Either way, we should see at least some progress this year, which will lead to a relief rally in Chinese stocks.
Because of the trade issues, Chinese stocks have lagged their U.S. counterparts. But my inclination is that this underperformance is about to end. Remember, we’re talking about the world’s second-largest economy. While growth may slow some in the coming years, China will remain one of the fastest-growing economies on the planet for the foreseeable future.