PREDICTIONS FOR THE NEWYEAR
were once very accessible to U.S. investors, only one thing is going to happen... More funds will flow into the remaining blue- chip Chinese stocks traded on Wall Street. To maintain their China weighting, index providers like MSCI, S&P, Dow Jones, Hang Seng, and FTSE Russell will allocate more towards the remaining stocks. Right now, the five biggest by market cap are:
BILL SHAW COMMODITY SUPERCYCLES STANSBERRY GOLD & SILVER INVESTOR
Commodity investors have taken it on the chin for years now. The sector has been locked in a brutal bear market for nearly a decade. And relative to stock prices, commodity prices are as cheap as they’ve ever been. The price ratio between the S&P GSCI Total Return Index – a benchmark of global commodity performance – and the S&P 500 Index is at a dramatic 50-year low. However, 2020 gave beleaguered commodity investors plenty of signs of hope... The price of gold rose 25% in 2020. That marks its best year since 2010. As COVID-19 ravaged the economy, the Federal Reserve wasted no time in firing up its printing presses – increasing its balance sheet by $3 trillion to more than $7 trillion. And Congress tossed in another $3 trillion in stimulus packages. As a new presidential administration takes control, these irresponsible monetary policies will continue – as will the dilution of the value of the dollar. With the threat of runaway inflation looming, investors will flock to safe-haven assets like gold and silver to preserve their wealth and protect their purchasing power. We expect 2021 to be
Tencent (TCEHY) at $778 billion. Alibaba (BABA) at $656 billion. Meituan (MPNGF) at $235 billion. Pinduoduo (PDD) at $205 billion. JD.com (JD) at $142 billion.
Of these companies, only Pinduoduo has yet to list its shares in Hong Kong. Meanwhile, only Tencent and Meituan are currently available to mainland investors via the Stock Connect program. Tencent gained 50% last year, while Alibaba added 12%. At these levels, it doesn’t take much of a move for Tencent or Alibaba to hit a trillion. But the biggest profits will likely be seen in the next three stocks. Last year alone, Meituan surged 191%, Pinduoduo leaped 370%, and JD.com boomed 150%. Similar performances in these companies this year could very well push them close to or even over the top by the end of the year.
102 January 2021
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