Ted Bauman: Invest In Chinese Stocks

One of the hot topics that have been taking up a lot of media time is the trade war between the United States and China. Some believe President Trump is doing the right thing taking a tough stance with China. President Trump sees the tariffs as a means to fix the trade imbalance between the two countries and to punish China for stealing intellectual property. Economist Ted Bauman is of the mindset that the trade war is only going to have negative ramifications for the global economy if it does not end.

While he opposes the trade war, he recently has been advising fellow investors to start paying attention to the potential bargains in the stock market that are occurring because of the fear of the trade war. He noted that the iShares China Large-Cap ETF was selling at a major discount. This ETF tracks some of the largest publicly traded companies in China. Ted Bauman listed some of the favorable metrics of the ETF that he thought made it appealing to investors. He noted the price-to-earnings ratio was 2.6. He said that it was only five years ago that investors had no issue paying a price-to-earnings ratio of 15.

Today this represents just how truly undervalued some of the biggest companies in China are. He also looked at the distribution percentage and the yield hadn’t hit that level since 2009. Ted Bauman says the trade war has had implications for the Chinese yuan. The currency has been declining since the start of the year. As the US placed tariffs on Chinese exports, this prompted the Chinese government to let the yuan fall in value. The stock prices of Chinese companies have moved with China’s currency. To date, the Shanghai Composite has lost eighteen percent of its value. Ted Bauman feels that China could end up doing more to retaliate against the United States. President Trump is threatening further tariffs if China does indeed retaliate. A move China could take is to hurt US companies that do business in China. This would eventually drive stock prices down in the United States, as many of these companies are listed on major stock exchanges.

Matt Badiali Urges Statside Investors to Look at Alcohol for their Cannabis Investments

Matt Badiali has sage advice for those looking to invest in Canadian cannabis, and that advice is to look into beverage companies. Molson Coors, Constellations Brands, and Heineken have all leapt into the cannabis industry in pursuit of an alcohol-marijuana hybrid beverage. This leap, which brings a combined total of over $200 billion with it, has created a massive amount of investment opportunities. As Canada is set to fully legalize marijuana nationwide the projected profits that can be made are quite sizable.

Canada will be the first G7 nation to legalize both the medical and recreational use of cannabis across the whole country. This has set Canadian cannabis markets in a frenzy, as the amount of money that can be made is staggering. Stateside only a handful of states allow medical use of marijuana, with an even smaller minority allowing recreational use. U.S. investors do not have many options when looking into the Canadian cannabis industry, but investing in companies that plan to do business with that industry is a profitable back door. This is why Badiali is pointing a shiny arrow at beverage makers.

Cannabis-infused drinks are the future of marijuana. The trend is expected to all but replaces traditional smoking. Many alcohol companies are already planning for this future with cannabis investments. Such investments reserve supplies of marijuana for said companies to use in their eventual hybrid drinks. Such drinks would not bring in much profit stateside, but in a fully legalized Canada they stand to make lots of money. So do investors who have bought in.

Matt Badiali is a trusted investment source for hundreds of thousands of prospective investors. Matt Badiali uses his knowledge and expertise as a geologist to create actionable projections for the natural resource market. He actually tours the globe examining natural resource operations up close. Matt Badiali also tirelessly follow trends, keeping himself up to date on the latest investment news. As a writer for Banyan Hill Publishing Badiali offers his insights to thousands of readers, and provides profitable returns for average-level investors. He is always a reliable source to consider for any opportunity.

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