China’s economic boom the last two decades has been historic. You don’t hear about it as much as before, but we’ve been talking about it here at MoneyWire the last few days because of what’s ahead.
A massive amount of money has been made in various industries. Gains so big that you think a decimal point is out of place. Profits that changed lives forever.
I am convinced that there will be another leg higher in the ongoing economic boom. I am also convinced that we can make a lot of money in the right companies.
I know a lot of investors who missed out on the first round of big gains and are still hesitant to put their money into China-related stocks. But this is not an opportunity you want to miss.
We can’t get away from the tweets and headlines about tariffs, tensions, and trade wars. Skeptics also point to China’s slower growth. It’s true. Growth has indeed slowed. But let’s keep that in perspective. There were years in the 1990s and early in this century when the economy grew more than 14% annually. Of course it’s going to slow down some.
Still, growth remains robust — above 6% each year, which most nations drool over. When you’re talking about a nation with 1.4 billion people — more than 4X the number of people in the United States — even “just” 6% growth means a lot of money is changing hands among a lot of people, businesses, and the government.
It’s important right now because Chinese stocks are trading at historically low valuations due to the trade dispute with the United States. Thus, we have one of the best buying opportunities in the last few years for the second largest economy in the world.
The moment the trade debacle with China is settled, stocks in that country will explode higher. And I expect it will be the beginning of another multiyear bull market.
There is something big around the corner, but it is not what the fear mongers and short-term traders expect. It is not the popping of a Chinese economic boom. It is the start of the next leg higher of one of the greatest economic stories of the century.
Several themes are converging to drive this next growth spurt, but one in particular has the potential to drive massive gains — 100X gains! — in the years ahead. Let me tell you a bit about it.
The Perks of An Aging Population
My research in China has uncovered a glaring fact about the country’s population.
It is aging … and fast.
The chart below shows the rapid increase in the 45+ age group in the next decade and beyond. Today, the median age in China is 37. By 2040, that number will have increased to 47. Monaco is the only other country in the world with a higher media age.
There are a lot of ramifications of a rapidly aging population. We know this through analysis as well as precedent. Japan has been dealing with it for years, and the U.S. is heading in the same direction.
With those ramifications come investment opportunities.
One of the most obvious correlations is healthcare. As people age, the need for healthcare services rises exponentially. According to Global Demographics, the total number of cancer cases is expected to increase from 1.56 million in 2018 to 2.59 million in 2028 … and then up to 3.1 million by 2033. Chronic conditions such as high blood pressure, stroke, diabetes, asthma, and lung disease already affect 209 million people in China. That number is expected to grow more than 50% in less than 10 years to 336 million.
The unfortunate rise in health issues will result in a massive healthcare spending boost by both the government and private sector. Healthcare spending is predicted to account for 17.1% of China’s GDP by 2028, up from 11.3% last year.
When you’re dealing with the eye-popping numbers of China, that’s a lot of people and money. Based on the sheer number of Chinese who will require medical attention in the coming decades, there is huge upside for healthcare-related companies.
Early investors could see gigantic gains.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.