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China has been dominating the headlines in recent days… And not in a good way.
Since late last week, worries about slowing growth, financial-system shenanigans, and the potential for an "Asian Contagion" type spillover have whacked global stocks – and have left folks wondering if the Chinese Miracle is over.
But China's kind of like a still-young tech venture: There are going to be reversals, it's going to be volatile, and it's normal to expect this kind of whipsaw market action.
And let me tell you something else: While it's true that Beijing has some big problems to solve, investors who just write China off are going to miss out on one of the biggest profit opportunities in global technology.
Even as the broader economy there slows (meaning it's still growing – just at a slower rate than before), there's a tech-focused slice of that country's market that continues to advance at a scorching pace.
In fact, if you look at the numbers, I bet you'll agree with my assessment that we're looking at the hottest investable market on earth.
Today I'm going to tell you all about this market… and I'm going to show you exactly how to play this for maximum gain.
Old Sam Would Be Proud
Few would argue that Wal-Mart Stores Inc. (NYSE: WMT), the retailing giant founded by the late Sam Walton, isn't the savviest big-box merchandiser on the planet. It has more than 4,500 stores in the U.S. market alone – as well as ventures abroad.
But I'll bet that a lot of folks would be surprised to discover that Wal-Mart is also one of the world's shrewdest high-tech opportunists. Back in 2012, as part of its never-ending global search for new growth, the Bentonville, Ark.-based company took a 51% stake in China retailer Yihaodian.
And Yihaodian just reported that the $1.9 billion in revenue it reaped in 2013 was up 70% from the year before.
As a web-only retailer, you see, Yihaodian sells into the super-hot sector that we're so interested in: the China e-commerce market.
Blue-chip consultant McKinsey & Co. says that China is already the world's second-largest e-commerce market – trailing only the United States.
Mainland China's online marketplace earned that No. 2 slotting by virtue of a decade's worth of 120%-a-year growth – a pace that dwarfs the still-hefty U.S. pace of 17% a year during the same stretch.
And McKinsey says China's e-commerce market will continue to surge – tripling between 2011 and 2015 to reach $395 billion.
And that's merely the start.
Only about 40% of China's populace is online today. With a 2013 population of 1.34 billion people, China still has 807 million additional consumers who could gain web access.
If only half those folks start shopping online over the next few years, you're talking about a market gain that's bigger than the entire U.S. population.
In our weekly chats at the Strategic Tech Investor, we consistently counsel you to watch for unstoppable trends – since those are usually high-percentage pathways to wealth.
Growth numbers of the magnitude we've been telling you about can translate into market-crushing gains – provided you pick the right stocks. And that's just what we're going to do for you here.
And we've chosen three that should fatten your wallet nicely in the years to come.
So let's take a look…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.