Tomorrow’s Critical Event Could Send These Stocks to the Moon
Tomorrow’s Critical Event Could Send These Stocks to the Moon by Justin Spittler – Casey Research
Hours from now, one of the biggest investing events of the year will take place.
This event should send billions of dollars into a stock market that’s largely cut off from the rest of the world. It could even trigger a triple-digit rally.
Yet very few U.S. investors stand to profit from this.
I’m talking about a special kind of Chinese stock. As you’re about to see, less than 1 out of 100 American retirees owns these shares. But you can buy them today…before they shoot to the moon.
I’ll show you how to do that at the end of this essay. But you need to understand something important first…
• China’s stock market has two kinds of shares…
Its “A-shares” trade in Shanghai and Shenzhen, or mainland China. It also has “H-shares,” which trade in Hong Kong.
Right now, many people own H-shares. But only about 2% of foreigners own China’s A-shares.
The reason for this is simple. MSCI doesn’t include A-shares in its Emerging Markets Index. It only tracks H-shares.
This is a huge deal. You see, MSCI is one of the most influential investing companies on the planet. It indirectly controls more than $10 trillion. About 94% of U.S. pension funds invest in global stocks that MSCI tracks with its indexes.
But none of that money finds its way to China’s mainland.
• Again, that’s because MSCI doesn’t track A-shares…
It makes absolutely no sense.
After all, China is the world’s biggest economy. And it has the biggest stock market after the United States.
You would think MSCI would track China’s mainland stock market due to its sheer size. But it doesn’t. And that’s kept billions of dollars out of Chinese A-shares.
But that could change in the next 24 hours.