The biggest threat the United States faces, militarily and economically, is China.
The Red Dragon has a secret 40-year plan to dominate the world, but Jim Wood's “China Shock” Stocks will win big no matter what happens.
The Teaser
There’s already some blood in the water.
Jim Woods is a former Army paratrooper and 30-year Wall Street veteran. The perfect background for a teaser like this one.
We have previously revealed Jim's “Proteus” Stock and his “Dark AI” Stocks, which turned out to be some solid, profitable businesses.
Two decades ago, “Made in the U.S.A.” meant something:
Now, everything is “Made in China”
Jim says this is “merely one more step in a 40-year stealth plan put in place by communist China.”
It all started on November 9, 1989, when the Berlin Wall fell.
That's when Mao Zedong's successor, Deng Xiaoping, quietly declared a new cold war against the U.S.
According to RealClearDefense.com, Deng's strategy was to “hide, bide, and never take the lead.”
So while the East Asian nation built up its manufacturing capabilities on the back of cheap labour and generous subsidies, stole America's proprietary tech, and strengthened its military, the U.S. had no idea about its true intention to become the world's next superpower.
However, Communist China has rigged the game in another way.
Since 1994, China has kept its yuan currency pegged below its fair market value. Making exports incredibly cheap, especially in comparison to those produced by U.S. competitors.
Now that China has emerged on the world stage and is no longer hiding, its endgame has become painfully obvious…to dethrone the dollar as the world reserve currency.
Can this be avoided, and just as important, can we China-proof our portfolio?
Jim believes he has a few stocks to grow our wealth in times of trouble.
The Pitch
Three stocks are teased across three special reports: The #1 Inflation Hedge, The #1 Stock to Insulate Your Money, and The #1 Strong MOAT Stock to Own.
A subscription to Jim's Investing Edge research service unlocks all three reports and more. The introductory price for the first year is $77, and the subscription also comes with a 30-day money-back guarantee.
A Fatal Crisis Averted
What do the Florentine Florin, Spanish Silver Dollar, Dutch Guilder, and British Pound all have in common?
There were all de facto world reserve currencies at one time or another, with the following characteristics:
- Primary exporter of manufactured goods and services
- World Financial Center
- Vast military power
All of them also lost their status as the world’s reserve currency.
A loss of industrial and technological edge, excessive national debt, and costly wars gradually eroded confidence in their currencies, and a new, more dynamic economic power eventually emerged.
Sound familiar?
The United States today has all of the trappings of a world power from yesteryear.
Meanwhile, China is the world's factory, producing nearly 32% of all goods. Hong Kong is a top-five financial center, and its annual military budget is the second largest in the world.
Time will tell if Trump's attempt to reverse course and bring back manufacturing, strengthen the dollar, and not get into any more wars, is too little, too late, or just in time to avert the most fatal crisis of all…a dollar crisis.
No matter how this plays out, as investors, we must protect and multiply our money in the face of any threat.
Jim claims his Crisis Wealth Multiplier system does exactly this with a simple red light/green light mechanism.
We previously covered most of the calculations and indicators that go into this system, so I won't rehash them here.
But a trio of stocks is now flashing green in Jim's multiplier system despite the Red Threat from China.
Revealing Jim Woods' “China Shock” Stocks
Jim drops a few hints about each of his three picks toward the end of his presentation. Here is what we have to work with…
The #1 Inflation Hedge to Own
- This company takes advantage of inflation by serving consumers who need bargains.
- It’s been in business for over 50 years.
A pair of companies fit this description, so I will cover my bases here and list them both: Dollar General (NYSE: DG) and Walmart (NYSE: WMT).
- Both serve customers looking for bargains, and both were founded more than 50 years ago, in 1939 and 1962, respectively.
The #1 Stock to Insulate Your Money
- It's an energy company that’s deep into fossil fuel production.
- The company pays out a generous dividend and is gobbling up market share like a starving lion.
The list of businesses that fit this description is a lot longer than only two. Let's keep it moving.
The #1 Strong Moat Stock to Own
- In Jim's opinion, this company has created more innovations and life-changing technologies than any other company in its market.
- It’s more than just a tech manufacturer; it’s also huge in the tech service market, and making a big splash in the finance market.
All signs point to this being Apple Inc. (Nasdaq: AAPL).
- From the Mac to the iPad and the iPhone, Apple has undoubtedly changed the game.
- The iPhone still accounts for the majority of the tech giant's annual revenue, but service revenue from the App Store and Apple Music is growing.
- Apple Pay is now the #1 most popular digital wallet with a 92% market share.
The Ultimate Bunker Portfolio?
So far this year, the S&P 500 is only down about 3.5%.
This is a bullish sign, as listening to the financial media, it would feel like we were in a 1930s-style depression.
Two of Jim's potential picks, Wal-Mart and Dollar General, have outperformed the market so far this year, and only one, Dollar General, is in positive territory.
However, Dollar General is coming off an awful year in which its stock lost 43% of its value, so it was due for a bit of a rebound.
The better question is how likely are these picks to out perform over the long-term?
Dollar General: Dollar stores will soon need to rebrand the way the five-and-dime stores transitioned into dollar stores in the 20th century. We could see $10 stores.
Wal-Mart: Its massive economies of scale and low-cost operator status make it hard to displace. Like McDonald's, it owns much of its real estate. I like the pick, but at a price below its current 37x price/earnings.
Apple: Looks like a short-term underperformer, as its costs rise due to tariffs, and a long term outperformer only if it can continue to innovate. Historically, many businesses have experienced drop-offs after their founders are no longer around. Apple could be one of these.
I like Wal-Mart as a bunker stock because it is an asset-backed, low-cost operator. But all are question marks at their present valuations.
I would also add gold, silver, and energy royalty plays to fortify a bunker portfolio.
Quick Recap & Conclusion
- Jim Woods says China has a secret 40-year plan to dominate the world, but a few “China Shock” Stocks will win big no matter what happens.
- China is the world's factory, producing nearly 32% of all global goods. Hong Kong is a top-five financial center, and its annual military budget is the second largest in the world. This screams danger, but no matter what happens, we must protect and multiply our money in the face of any threat.
- Three stocks are teased as “bunker stocks” and their names are revealed in three special reports: The #1 Inflation Hedge, The #1 Stock to Insulate Your Money, and The #1 Strong MOAT Stock to Own. A subscription to Jim's Investing Edge research service unlocks them all for $77 for the first year.
- The Greenbull has a good idea about two of Jim's three picks. The #1 Inflation Hedge sounds like either Dollar General (NYSE: DG) or Walmart (NYSE: WMT), and the #1 Strong Moat Stock is Apple Inc. (Nasdaq: AAPL).
- Of the three, I like Wal-Mart as a bunker stock the most because it is an asset-backed, low-cost operator. But the present valuations of all three have room to fall.
What is your favorite bunker play, besides guns, food, and ammo? Drop it in the comments.