VIDEO: 10 Stocks To Watch In 2019!

This is a list of 10 stocks I think are worth watching in the new year.  If you’ve never invested before, please check out my short guide, The Stock Market is For Everyone.  Thank you!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

The Chinese Bear!

The threat of a trade war with China is continuing to wreak havoc on the shares of some of China’s largest technology companies.

This means that the share prices are becoming very attractive!

Chinese stocks are in a bear market.   The 50 million dollar question is how much longer it will last.

It’s impossible to know.  However, I saw a similar scenario in 2015, in which Chinese stocks were down seemingly every day.

At that time, I bought shares of Alibaba (NYSE: BABA) at a price of $80, and it went down to $55.  Over the next three years, it would go from $55 to $211.

I understand the fear investors have regarding a trade war.  But I don’t think either Trump or Xi Jinping wants an all out trade war.

Regardless, the prices of Chinese stocks are continuing to fall.   Here are some companies to put on your radar if you want some exposure to China.  The percentages represent how much they are down from their 52-week high.

Alibaba (NYSE: BABA): down 27%

Tencent (TCEHY):  down 35%

Baidu (NASDAQ: BIDU): down 26%

NetEase (NASDAQ: NTES): down 49%

Baozun (NASDAQ: BZUN): down 33%

There is a secular trend in China regarding the emergence of the largest middle class in history.  That trend isn’t going away.

When you think about the economic impact this can have on companies, think Walmart (NYSE: WMT) and Home Depot (NYSE: HD).  These are two of the best performing stocks in history, and they were both disrupters that benefited from the emergence of the American middle class.

This story will play out over the next 25 years…not 25 days.

Until next time!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

ARK on Deep Learning

Good morning!

Today I’m sharing a webcast from ARK Investment Management.  As I have said in a previous post, I find ARK’s research to be exceptional.

This video by analyst James Wang discusses deep learning, a subset of artificial intelligence (AI): https://ark-invest.com/research/inside-deep-learning

When you are done watching it, take a look at this list of several companies that I feel are poised for tremendous growth due to deep learning.  I believe that AI should be a part of every investor’s portfolio!

*  The Stock Market is For Everyone, Eric Milton’s short guide to stock market investing for beginners, is available in e-book and paperback formats.  If you like what you see on this blog, we hope you’ll take a moment to purchase and read the book, let us know what you think via a blog comment or Amazon review, and share this information with others!  Thank you. *

China Is Starting To Look Attractive!

If you don’t pay attention to foreign markets, you might not know that emerging markets are not doing as well as the United States.

For starters, there is a growing concern that the economic crisis in Turkey could be the beginning of a contagion.  The price of oil is also down, and that has people scared that the world economy might be slowing down.

Lastly, there is this looming trade war with China that has caused the Hang Sang Index to fall over 20% this year.  As a result. Chinese tech stocks have been getting crushed…

Alibaba (BABA): The largest e-commerce company in China is down 24% from its 52-week high.

JD.com (JD): The second largest e-commerce company in China is down 33% from its 52-week high.

Tencent (TCEHY): The largest gaming company in the world reported earnings that disappointed due to a lower revenue number.  One of the reasons the revenue number is lower is that the Chinese government made Tencent pull one of its popular games due to its graphic violence.  Tencent is down 48% from its all-time high.

NetEase (NTES): NetEase is a huge gaming company in China, and one of the best-performing stocks over the last five years.  It’s down 34% from its all-time high.

Baozun (BZUN): The “Shopify of China” is down 37%.

iQiyi (IQ): The “Netflix of China”, and newly traded company, is down 74% from its high.

China comes with its own set of challenges.  It’s still a communist country; the government can dictate what a company can and cannot do.  So if you decide to invest in China, know that there is considerable political risk.

However, the tailwinds are enormous.

China is the most populous country in the world, with the largest emerging middle class in history.  I expect each of the businesses I listed to flourish!

I feel having at least one of these companies in your portfolio is a good idea, if you don’t already.

Disclaimer/Disclosure Statement: Information in this article is not intended to be a recommendation to invest in any stock.  Rather, it is presented for readers’ education and consideration when making their own investment decisions.  The author is long iQiyi.