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My publisher, Mike Ward, didn't hold back when I told him that it was time to buy Russian Internet stocks in late 2015, saying simply…
…"That's the gutsiest call I've ever heard."
Savvy investors who followed along had the opportunity to bank some serious gains with companies like Yandex N.V. (Nasdaq:YNDX), which shot from a low of $10.57 on Sept. 25, 2015, to a high of $44.49 on Feb. 21, 2018. Or, on Mail.ru Group Ltd. (OTC: MLRYY), which jumped from $16.88 on Sept. 8, 2015, to a high of $38.05 by Feb. 27 of this year.
Both companies were under pressure, underloved, and unrecognized at the time… scraping the proverbial bottom of the barrel, in fact.
Fast forward to today.
I believe you've got the same opportunity with a very select group of stocks in one of the most unlikely places on earth… and for nearly the same reasons.
The Red Dragon has every ingredient needed when it comes to building the kind of wealth most investors crave but very few will ever achieve.
Think about it.
China's almost universally hated for predatory trade practices, intellectual theft, and robbing otherwise vibrant countries of their job base. But it's also beloved in some circles for its drive to modernization.
I don't know which camp you fall into, and frankly, that's not my concern – so let's get that off the table. I don't have the luxury of taking sides in my capacity as Chief Investment Strategist for Money Morning.
My job is to help you make money by identifying compelling investment opportunities around the world, even when that means telling you things you may not like nor care to hear.
In fact, that's part of the allure.
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Investors who follow the crowd are almost always led astray.
Think about what happened to everyone who piled into Internet stocks in the late 1990s, when the tech-heavy Nasdaq roared 285% in just three years. They got wiped out when the same index crumbled in March 2000 and ultimately lost 77% of its value over the next two years.
The situation was much the same in late 2007 when the stock markets were tapping new highs almost as fast as breathless headlines could report them. You know how that situation ended – the S&P 500 tumbled 57.05% from Oct. 31, 2007, to March 6, 2009.
Then there was 1939.
Millions of investors were selling everything they had, and, in many cases, locking in significant losses on the eve of WWII, as global markets tumbled. Yet, an unassuming man named John Templeton quietly began buying.
In what would ultimately go down as one of the single greatest financial moves ever made, he borrowed $10,000 and bought shares of every company trading on the NYSE for less than $1, including 37 that were already bankrupt. Just five years later, he sold 100 of the 104 he'd purchased at a profit, and, in doing so, made roughly five times his money.
Templeton would go on to refine his philosophy and make billions by investing at what he called "points of maximum pessimism." He created his own mutual fund in 1947, and investors who got on board had the opportunity to turn each $10,000 invested into more than $2 million.
Templeton, incidentally, died a billionaire and is rightly regarded as one of the greatest investors in history. Better even than "that guy from Omaha" – the brilliant Warren Buffett.
I think we've got the identical situation in China today, and especially when it comes to BAIT stocks.
About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.