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4 ETFs to Profit as Investment Flees China

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I’m Chris Scott, Managing Editor at Bauman Daily, and I’ve got several great investment opportunities for you today.

When Money & Markets first reached out to ask us to share our most exciting investment ideas each month, I was thrilled.

The combination of Ted Bauman’s knowledge as a renowned economic historian and Clint Lee’s expert stock analysis has made their publications must-reads.

It’s why the recommendations in The Bauman Letter and Alpha Stock Alert are outperforming the market by a wide margin.

And the same thinking that goes into those services’ stock picks is shared with the readers at Bauman Daily…  including when Ted identified the recommendations I’ll share below.

Today, I’m chiming in because my professional experience around the world gives me tremendous confidence in these opportunities.

It all has to do with the end of China as the world’s factory … and how you can profit from it.

You see, I didn’t always work in the world of publishing. I spent years in the seedy world of Chinese commercial real estate and as a trade representative for the State of Missouri.

Remember the yacht that Steve Bannon was arrested on several weeks ago? I worked for the Chinese fugitive billionaire owner of that boat in Beijing at his colossal failure of a property development. I even partied in his unfinished private club at the top of that building on Chinese New Year.

That’s all before Guo Wengui found himself on the wrong side of Beijing powerbrokers and started hobnobbing at Mar-a-Lago…

And before I returned to my home in the United States to research China policy for Congress.

I was appointed to work for what’s often referred to as the “China Commission,” a group set up by Congress to keep track of China’s commitment to play fair in trade and respect human rights at home.

Most people don’t realize … or don’t remember … that the decision to allow China to join the World Trade Organization was extremely controversial. The money to be made eventually trumped the politics, but not without compromise. That’s why the China Commission was established as part of the legislation that authorized China’s new trade relationship status.

If China didn’t make changes in the right direction, cheerleaders of the bill promised, we’d track that and could rethink the whole arrangement.

So the very basis for our current trade relationship with China, in one aspect, legally depended on Beijing reforming its economic policies and governance in the direction of more openness and more freedom.

Well, as Ted noted on Tuesday, under current President Xi Jinping, the Chinese Communist Party has gone the opposite direction at breakneck speed.

And guess what? It’s not just both parties in the United States that have finally come around to caring about it.

Japan, Australia and India are stepping up efforts to move away from China, and further integrate with each other and likeminded countries.

Along with the U.S., these countries and others are reeling in investment from China to redeploy at home and elsewhere … and that means great investment opportunities.

There are three exchange-traded funds that allow you to tap into the opportunities in these countries.

The iShares MSCI Japan ETF (NYSE: EWJ), the iShares MSCI India ETF (NYSE: INDA) as well as the iShares MSCI Australia ETF (NYSE: EWA) all have the potential to breakout.

And as Clint Lee has pointed out in a recent Bauman Daily video, you can profit from all of the manufacturing that’s already flocking to Vietnam with the VanEck Vectors Vietnam ETF (BATS: VNM).

I’m intimately familiar with China’s great strengths that have made it an economic powerhouse…

And critics of the Chinese Communist Party should be wary of wishful thinking. The likes of Kyle Bass and Gordon Chang have said the house of cards will fall for 20 years. And they’ve been completely wrong for 20 years.

So I’m not in the business of predicting China’s imminent collapse.

But I can assure you that foreign manufacturing and investment is already fleeing. That trend is only going to accelerate.

And, as Ted said earlier his week, China’s loss equals your gain.

Before joining Banyan Hill in 2020, Chris was the Washington correspondent for Hong Kong-based Asia Times, where he covered finance and trade. He is currently the managing editor for Ted Bauman’s publications, including Bauman Daily, The Bauman Letter and Alpha Stock Alert.

His professional background spans a broad range of fields, including policy research for Congress and commercial real estate services.

Fluent in Mandarin Chinese, Chris holds a master’s degree in international relations from The John’s Hopkins School of Advanced International Studies.

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