The China Stimulus - Three Ways to Profit

Get ahead of "what comes next" ...

Shen Kuo, an 11th Century China scientist, writer and innovator was a master of mathematics, optics and navigation (he was the first to describe the magnetic-needle compass). He was also a finance minister and reformist in the Song Court.

Editor’s Note: As a part of your SPC Premium membership, one of the benefits is our Quarterly Roundtables. Each quarter, Chief Stock Picker Bill Patalon calls on one or more of his network of experts for a deep dive into the story most relevant at the moment. It might be a “state-of-the-market” or “state-of-the-economy” assessment. Or an analysis of a specific company, asset class, geographic market, trend or issue that he thinks you need to know about. He’ll look at where we are now, dig into the crucial “what comes next” – and, most important of all, show you how to take action to build new wealth, or protect what you already have.

Chinese stocks yesterday notched their heftiest single-day gains in 16 years — apparent proof that Beijing hit the bullseye with its stimulus bazooka.

Investors are scrambling to board the “China Stock Market Express.”

The Shanghai Composite Index surged 8.1% yesterday and is up 21.4% since last Tuesday — the day China’s $114 billion stimulus package was unveiled. That’s the best five-day surge since 1996.

Indeed, the Red Dragon’s CSI300 blue-chip index is now up almost 30% from its February lows — with more than 25% of that burst coming since Tuesday. And China stocks like Alibaba Group Holding Ltd. BABA 0.00%↑ and JD.com JD 0.00%↑ have been big, immediate and very visible winners.

But I see another winner … one not so obvious … and not so immediate – but a long-term winner, nevertheless.

I’m talking about … coal.

My friend Matt Warder, publisher of The Coal Trader here on Substack and a guy who’s viewed as perhaps the best independent coal analyst in North America, says Beijing’s bazooka shot could knock out some of the things dragging down that economy.

Here in this latest SPC Premium Quarterly Roundtable, I’ll do three things:

1. I’ll give you a simplified look at China’s stimulus plan.

2. I’ll give you two intriguing tech “bonus plays” — potential beneficiaries from Beijing’s latest financial move.

3. And, with Matt’s expertise, I’ll update you on that “Black Diamond Commodity” — coal.