Wednesday, April 26, 2006

"Sell Wal-Mart, Sell Caterpillar" - China Affects Every Stock You Own

So I got this email...one of those that you don't even remember when you signed up but continue to receive in your inbox that you normally just delete...yeah one of those emails. Well this one caught my attention. The subject: "Sell Walmart, Sell Caterpillar." In the email, it goes on to say...
My name is Robert Hsu, and I have some shocking news for you: China affects every stock you own. Let me explain. Wal-Mart is a China stock. If Wal-Mart were an individual economy, it would rank ahead of Australia and Canada as China's 8th-biggest trading partner. But even this understates reality. A toy company like Hasbro is doing great business this holiday season, and over 20% of Hasbro's sales are through Wal-Mart. And most of Hasbro's toys are made in, you guessed it, China. Boeing, Motorola, Cisco, Autodesk, Yum Brands and Caterpillar--all are China stocks. They are China stocks either because their profits depend on China importing their goods (Boeing is both outsourcing the new 7E7 Dreamliner assembly AND counting on orders from China Air) or because their profits depend on imports FROM China. In fact, I would go even further. EVERY stock in your portfolio is a "CHINA STOCK." It is a China stock either because its fortunes are directly and openly enmeshed with China's astounding growth. Or it is a China stock because management has steadfastly IGNORED the fact that China is the newest, most DISRUPTIVE and most important factor in its survival. Which brings up a question that my American friends often find a little disturbing: What, exactly, is YOUR China investment strategy? Because, if I were to look inside your portfolio, the stocks you hold--yes and the bonds and even the real estate--would imply a very clear China Strategy.
Then it goes on to say:
In this free special report you'll learn: * The surprising reason that McDonald's won't be successful in China. * What China's monstrous appetite for oil really means for ExxonMobil and Chevron. * Why you should buy Motorola but not Qualcomm. * The real reason so many U.S. stocks are riding high on the China Miracle and so many China stocks are failing. * Do you Baidu--and should you? * Are stocks listed on the Chinese exchanges poised to make a comeback in 2006? The answer may surprise you. * PLUS 7 U.S traded China stocks that you should avoid. Full details on all this and more in my new Report, "Red Flag Stocks." It's yours FREE when you go here now.
If you're interested... http://investorplace.com/order/?pc=6GL152 I don't want to link it just because I don't feel comfortable having my readers head over to sign up...I'm not sure if they will try to "up sell" you. So I'm not going to link it, but you can copy and paste if you want. It's not a referral link...the "?pc=6GL152" part is just the specific document I believe. Anyway, I don't trust a lot of these things...If you couldn't tell already. Am I going to sign up? No...Interesting read though...

2 comments:

Apex said...

I would be curious why this email caught your eye.

It does not sound any different to me than the typical spam. Trying to make you think you are missing out on a big secret by implying there is a grand China strategy that if only you could decipher you could make big investing dollars.

Is that snake oil really so different than the kind anyone else is selling?

freedumb said...

Hmm, good question.

I'd have to say the reasons listed just made sense to me. China does have tremendous influence on the US...actually, with the global economy, we're all intertwined...but China...jeez, talk about investing in the US...I wouldn't say it's an eye opener, but it just re-affirmed a lot of what we see, but maybe not really realize...does that make sense?