President Donald Trump has been searching for a way to punish China for its wildly unfair trade practices.
And he may have just found something in… solar panels. A federal trade panel recently declared that Chinese imports of solar panels are hurting American manufacturers.
Ever since, you can bet that the White House has been mulling tariffs.
Don't worry about it…
When we talked on Aug. 29, I told you not to be concerned about President Trump's trade war threats.
And today I'm doubling down on that proclamation.
That's because instead of investing in Chinese importers, we're focusing on internal growth in the world's most populous nation – especially all those people's quickening migration to the web.
Back in August, we took a close look at the Emerging Markets Internet & E-Commerce ETF (NYSE Arca: EMQQ) as a bunker against tariffs.
And today I've got another one.
It's great play on a $47 trillion Chinese tech market.
This market represents one of the fastest-growing global tech trends on Earth, according to new data from iResearch. This segment barely existed a decade ago but will grow by 422% between 2016 and 2020.
So let's look at that data – and at a way to get in on this trend with a stock that's already beaten the market by ninefold so far this year.
But maybe you're still concerned about the wisdom of investing in a nation that President Trump has in his economic crosshairs.
Well, I've got not one… not two… but five reasons why this winner is going to keep beating the market – and making its investors wealthy – for generations…
From $9 Trillion to $47 Trillion… in Five Years
China and its 1.3 billion people have rapidly adopted the mobile phone as their primary means of accessing the online world – especially for shopping.
No wonder the new data from iResearch shows that mobile payments in China is quickly eclipsing whole other industries. In 2016, the sector was worth $9 trillion, large enough to give it the same value as the world's fourth-largest economy.
Measured against this mega-trend, it's almost impossible to overstate the success of Alibaba Group Holding Ltd. (NYSE: BABA). It launched in 1999, long before the web had any real presence in China.
Today, the e-commerce giant sells goods through its online and mobile outlets in 40 categories and operates in 190 countries.
It's famous for Singles' Day, a Valentine's Day type holiday that also is world's largest online shopping event. Last Singles' Day, Nov. 11, 2016, Alibaba did $17.8 billion in sales in just 24 hours.
To become a mobile payments powerhouse, the company launched Alipay in 2004 and has pushed it to a dominant role.
Alipay now has some 400 million active users and accounts for about half of China's mobile payments. It's a smart play – Statista says that as of June, the number of mobile contracts in China was nearly the same as the nation's population, coming in at 1.36 billion.
But that's just half of the equation. After all, Alibaba is a great e-commerce firm in its own right.
To get a sense of why it can double your money in the next three years, let's run it through the five "filters" of Your Tech Wealth Blueprint.
These "rules" help us pinpoint the most exciting and fastest-moving opportunities so you can safely capture wealth – and have a better life now and in retirement.
Take a look…
Tech Wealth Rule No. 1: Great Companies Have Great Operations
These are well-run firms with top-notch leaders.
Alibaba Executive Chairman Jack Ma is clearly a visionary leader. He saw the potential for this firm even before most Chinese had personal computers or web connections.
A recent piece in Barron's suggests that Ma may be a better leader than even Jeff Bezos, CEO and founder of Amazon.com Inc. (Nasdaq: AMZN).
Of course, that's a matter of debate. But this much is clear…
Alibaba has 10 times the profit margins of Amazon.
Plus, Ma has an ace up his sleeve. The firm's CEO is Daniel Zhang. He was the architect of Alibaba's big move into mobile and also helped launched Singles' Day.
Tech Wealth Rule No. 2: Separate the Signal from the Noise
To create real wealth, you have to ignore the hype and find companies with rock-solid fundamentals.
Alibaba is no hype machine. Instead, it's a giant tech conglomerate that just keeps finding new ways to make money. No amount of anti-China sentiment in the United States has dinted this stock's rise.
More to the point, during the 2016 election and earlier this year, Wall Street worried that Trump's China-bashing would hit associated stocks.
Had you sold this "Trump-proof" stock at the beginning of this year, you'd have given up the chance to double your money.
Tech Wealth Rule No. 3: Ride the Unstoppable Trends
We look for stocks in red-hot sectors because they offer the best chance for life-changing gains.
Alibaba is targeting a trend that is simply exploding. As noted earlier, mobile payments in China will rise to $47 trillion by 2021. That's an increase of 422% in just six years.
But as incredible as it sounds, that growth understates what's going on here. China's mobile payments were worth just $15 billion in 2011, according to iResearch.
Tech Wealth Rule No. 4: Focus on Growth
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.