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These Guys Must HATE Me

Friday, September 30, 2016 4:44
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For some reason, these guys don’t want this story out there…
But it will be the biggest story in finance over the next five to seven years.
You have a right to know about it. You deserve to know about it.
Because of this story, hundreds of billions of dollars will flow into Chinese stocks.
I assume the guys behind the story don’t want it out there because they don’t want investors like you and me to take advantage of it early. They are basically “hiding” it.
So I’m sure they don’t like me today… because today, I am exposing their story…
The story is simple, at its core…
Right now, China is the world’s second-largest economy and stock market. However, the stocks that trade on China’s stock market are NOT included in the global stock indexes.
That is crazy. That needs to change.
To put it in plain English, most global stock indexes are basically weighted on market size and importance. China is big and important – however, its stock market is just not as “open” or “accessible” to investors as other major stock markets. But this is changing – fast.
In short, Chinese stocks need to be included in world stock market indexes.
Two days ago, MSCI – the world’s leading provider of global stock indexes – announced the change is coming… at least, it sort of did.
MSCI put out an e-mail with this subject line: “Launch of New Indexes Reflecting the Effect of a Potential China A Inclusion… “
The press release is a bit hard to follow if you’re not in the industry… But its message tells us what we need to know:
MSCI is pleased to announce the launch of 20 new illustrative indexes, reflecting the effect of a potential 5% partial inclusion of China A-shares into the MSCI Emerging Markets Index…
Based on that, it appears that MSCI will start including China’s local stocks in its indexes, right? And this should start the flow of money into Chinese stocks, right?
Not so fast…
In the same e-mail, MSCI later says…
The availability of these illustrative indexes is not indicative of… any future decision whether to include China A-shares into the MSCI Emerging Markets Index.
What? MSCI is creating indexes with China in them… but it can’t say that it’s including China in its indexes? Huh?
“What’s the point of launching these indexes if MSCI isn’t planning on including China in future indexes?” a good friend of mine asked.
I look at this last part from MSCI like I look at the Federal Reserve’s announcements… I think MSCI is trying to put an element of doubt in investors’ minds so they don’t try to take advantage of this now.
The Federal Reserve has threatened to raise interest rates many times over the last six years. But for all its talk, we’ve only seen one rate rise in all that time. Investors would have been better off NOT listening to the Fed’s words, and instead investing based on our zero-percent world.
MSCI is trying to cast doubt on when it will include China in its indexes. It’s also essentially “hiding” its press releases about including China. (Go look for them on Google this month – but good luck finding them.)
The reality is that MSCI and the other index providers must include local Chinese stocks in their global indexes – and sooner rather than later. Ultimately, this will cause hundreds of billions of dollars to flow into local Chinese stocks in the next five to seven years.
It’s the biggest story in finance, and nobody is talking about it.
I urge you to get your money there first.
Good investing,
P.S. I’m so bullish on this idea that I’ve recently launched a brand-new product called True Wealth China Opportunities to take advantage of it. To learn more about this opportunity, click here.


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