We've Got Five Reasons This Trade War Bunker Is Poised to Double

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

[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]

Companies that have the strongest growth rates almost always offer the highest stock returns.

Over the past three years, Alibaba has grown sales an average of 38%. If that rate holds, they will double again in just two years. Even better, growth has recently quickened, notching a 58% gain in the most recent quarter.

Then again, this is a firm that keeps finding new routes for growth. It's moved into messaging, news, social networking, and cloud hosting, as well as music and video streaming.

Tech Wealth Rule No. 5: Target Stocks That Can Double Your Money

This is where we look at the firm's earnings growth and see how long it will take the firm to double profits. By doing that, we can figure out how long on average it should take for the stock to give us triple-digit gains.

I've gone through the firm's financials in detail and I'm projecting earnings per share will grow by an average 24% over the next three years. Bear in mind, this is a conservative approach. It's based on the three-year track record and ignores the fact that earnings have recently climbed by 48%.

The road to wealth is paved by tech, and Michael's Strategic Tech Investor puts you on the fast track to investing success with analysis, stock picks, and strategies that can double, triple – even quadruple your money quicker than any other sector on earth. Just click here to get started – it's absolutely free.

Now we use what I call my Doubling Calculator. Divide the compound growth rate of 24 into the number 72. We find that it should take just over three years for Alibaba to give us 100% gains.

Even if you invested a few hundred dollars now, imagine what you'll end up with in just a few years. Then imagine what you could pile up if you hold onto Alibaba for 10... 20... 30 years.

Then imagine what you could do with it - and suddenly that Catalina 425 doesn't seem so out of reach.

The stock is trading around $170, giving it a $436.01 billion market cap. Alibaba is up 102% so far this year, meaning it crushed the S&P 500 by more than ninefold.

But don't let that scare you off this winner. With so much growth ahead, this is a quality stock with plenty of room to run.

It's one that will give you plenty of room to imagine...

Don't Miss This Historic Cash Windfall: With seven more states set to legalize marijuana in 2017, the time to invest in marijuana stocks is now, before the next wave of wealth hits. Learn how to get started with this unique "pot investment" plan that gives you a chance to make a fortune with a tiny $100 stake. Read more

The post We've Got Five Reasons This Trade War Bunker Is Poised to Double appeared first on Strategic Tech Investor.

About the Author

Michael A. Robinson is a 36-year Silicon Valley veteran and one of the top tech and biotech financial analysts working today. That's because, as a consultant, senior adviser, and board member for Silicon Valley venture capital firms, Michael enjoys privileged access to pioneering CEOs, scientists, and high-profile players. And he brings this entire world of Silicon Valley "insiders" right to you...

  • He was one of five people involved in early meetings for the $160 billion "cloud" computing phenomenon.
  • He was there as Lee Iacocca and Roger Smith, the CEOs of Chrysler and GM, led the robotics revolution that saved the U.S. automotive industry.
  • As cyber-security was becoming a focus of national security, Michael was with Dave DeWalt, the CEO of McAfee, right before Intel acquired his company for $7.8 billion.

This all means the entire world is constantly seeking Michael's insight.

In addition to being a regular guest and panelist on CNBC and Fox Business, he is also a Pulitzer Prize-nominated writer and reporter. His first book Overdrawn: The Bailout of American Savings warned people about the coming financial collapse - years before the word "bailout" became a household word.

Silicon Valley defense publications vie for his analysis. He's worked for Defense Media Network and Signal Magazine, as well as The New York Times, American Enterprise, and The Wall Street Journal.

And even with decades of experience, Michael believes there has never been a moment in time quite like this.

Right now, medical breakthroughs that once took years to develop are moving at a record speed. And that means we are going to see highly lucrative biotech investment opportunities come in fast and furious.

To help you navigate the historic opportunity in biotech, Michael launched the Bio-Tech Profit Alliance.

His other publications include: Strategic Tech Investor, The Nova-X Report, Bio-Technology Profit Alliance and Nexus-9 Network.

Read full bio