Customer Service 1 (888) 261-2693
Please enter Search keyword. Advanced Search
Home About Us Resources Archive Free Reports Market Window

How to Buy China – At a Huge Discount

By Dr. Steve Sjuggerud
Thursday, January 4, 2018

I love it when I can find a way to buy a dollar for 80 cents as an investor...
 
When I'm certain the deal is legit, I get fired up. Making money is hard. Free money like that is nice.
 
Discounts like this are hard to find in the stock market, though...
 
That's because the market is pretty darn "efficient." Whenever a too-good-to-be-true opportunity pops up, it soon evaporates as investors take advantage of it. It often happens quicker than you can imagine.
 
But one of these opportunities has just popped up for us...
 
And it just so happens to be a fund that invests in my favorite opportunity for the next five years...
 
This fund is a unique type, called a "closed-end fund."
 
Closed-end funds are interesting to me for one unique reason – they can trade at big discounts (or premiums) to their liquidation values.
 
Typically, closed-end funds trade at a small discount to their liquidation values. Those small discounts are not enough to get me interested.
 
I do get interested when those discounts get big... and when I'm interested in the fund's objective.
 
We have that situation today – with the Morgan Stanley China A Share Fund (CAF).
 
Today, this fund trades at the largest discount to liquidation value of all closed-end funds valued at $200 million or more.
 
More than 300 closed-end funds have market values that high. And right now, this one particular fund is trading at the largest discount of all of them.
 
As I write, the Morgan Stanley China A Share Fund trades at a 16%-plus discount to its liquidation value.
 
I'm a buyer whenever the discount is greater than 15%. And I'm a seller whenever the discount narrows dramatically, like it did over the summer (when index-provider MSCI announced it will include Chinese A-shares in its major indexes).
 
The easiest free way to track (and screen) for closed-end funds trading at a discount is at www.CEFConnect.com. To track this fund, type "CAF" in the box at the top right, and you can see the discount and its history.
 
Chinese A-shares are my top investing idea for the next five years. China is the world's second-largest economy and second-largest stock market... Yet until recently, its locally traded A-shares were completely left out of MSCI's major indexes.
 
Thanks to MSCI's decision last summer and other developments in China, I believe more than $1 trillion will flow into Chinese stocks during the coming years.
 
CAF gives you a way to get in on this idea, at a 16% discount. Check it out...
 
Good investing,
 
Steve




Further Reading:

Last summer, MSCI decided to include Chinese A-shares in its major indexes. "I can't overstate the importance of this change," Steve wrote. "It will affect just about every investor on the planet." Get all the details here: A Historic Change Is Underway in Chinese Stocks.
 
"The Chinese stock market has modernized significantly," Steve says. And one of those changes could send even more money flowing into China over the next couple of years. Read more here: $1.7 Trillion Is Headed Into Chinese Stocks by 2019.

Market Notes


THIS OIL GIANT IS SOARING

Today's chart highlights one of our favorite strategies at work...
 
As longtime DailyWealth readers know, commodities are incredibly cyclical. If you catch one of these big cycles at the wrong time, you can lose a fortune. But the opposite is also true. And right now, we're seeing a quiet but powerful uptrend in one of the world's largest oil companies...
 
We're talking about Royal Dutch Shell (RDS-A) – known more commonly as Shell. The multinational company operates in nearly all aspects of the oil and gas industry, from exploration to distribution. With a market cap of around $310 billion, Shell is one of the largest publicly traded companies in the world. And as oil prices have crept higher, so have Shell shares.
 
As you can see in the chart below, shares have broken out over the last six months. They're now trading at new 52-week highs and are up 30% over the past year alone. If oil prices stay in an uptrend, so should Shell shares...
 

premium teaser

Buy one of China's most dominant businesses at a 22% discount
 
I believe it'll become the world's largest publicly traded company. And I've found a way for you to buy it at a huge 22% discount...
 

Recent Articles
Legal Notices: Stansberry Research LLC (Stansberry Research) is a publishing company and the indicators, strategies, reports, articles and all other features of our products are provided for informational and educational purposes only and should not be construed as personalized investment advice. Our recommendations and analysis are based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.

 

Readers should be aware that trading stocks and all other financial instruments involves risk. Past performance is no guarantee of future results, and we make no representation that any customer will or is likely to achieve similar results.

 

Our testimonials are the words of real subscribers received in real letters, emails, and other feedback who have not been paid for their testimonials. Testimonials are printed under aliases to protect privacy, and edited for length. Their claims have not been independently verified or audited for accuracy. We do not know how much money was risked, what portion of their total portfolio was allocated, or how long they owned the security. We do not claim that the results experienced by such subscribers are typical and you will likely have different results.

 

Any performance results of our recommendations prepared by Stansberry Research are not based on actual trading of securities but are instead based on a hypothetical trading account. Hypothetical performance results have many inherent limitations. Your actual results may vary.

 

Stansberry Research expressly forbids its writers from having a financial interest in any security they recommend to our subscribers. And all Stansberry Research (and affiliated companies), employees, and agents must wait 24 hours after an initial trade recommendation is published on the Internet, or 72 hours after a direct mail publication is sent, before acting on that recommendation.

 

© 2024 Stansberry Research, LLC. | Privacy Policy| Customer Service
Stansberry Research. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This website may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of Stansberry Research, LLC. 1125 N Charles St. Suite 500, Baltimore MD 21202.