How to Play China’s New Stimulus Package (at a 17% Discount)

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When I show you a chart like the one below, your first thought might be that we’re looking at, say, the recent stock performance of NVIDIA (NVDA)—or maybe a biopharma firm that just dropped a breakthrough treatment:

Not a Tech Stock—Just a “Boring” Index Fund

But you’d be wrong. What we’re looking at here is the iShares MSCI China ETF (MCHI), an index fund tracking the Chinese stock market, up to its peak early last week.

That jump is the direct result of the Chinese Communist Party’s recently announced stimulus package.

The gains have attracted the attention of Chinese day traders and speculators, as well as those in the West.… Read more

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Remember a decade or so back, when we heard over and over again that the coming decades would be all about China?

If you ignored that prediction and stuck with well-established US investments (especially dividend-paying US stocks and funds), you made a smart move. (We’ve done the same since we launched our CEF Insider service back in 2017.)

Our conviction continues to be that the USA is the best place to find top dividend payers—including our favorite high-yielding closed-end funds (CEFs).

I’ll give you 16 such US-focused CEFs to consider in a moment—as well as specific looks at two 17%+ (!)… Read more

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Chinese stocks have cratered, and that might have you wondering if there are bargains to be had.

If you invest in closed-end funds (CEFs), which regularly offer yields north of 7%, you may also be wondering if CEFs that focus on China might be worth a look now, too—especially as these funds’ yields have popped as their prices have faded.

Let’s dive into the current state of play in China and answer these questions. Further on, I’ll give you my verdict on a China-based CEF throwing off an outsized 6.6% yield today.

Chinese Stocks Plunge: Value or Trap?

If you’re wondering where the pull some value investors are feeling toward China is coming from, this chart explains it.… Read more

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With China handily beating the coronavirus while pretty well every other country struggles to contain it, you might be considering buying Chinese stocks now.

It seems like a no brainer, right?

Unfortunately, such a move would be a mistake—especially if you’re lured by the siren song of the closed-end fund (CEF) I’ll name below. Because there’s a gathering storm that’s threatening the country’s stock market and economy, and few people are talking about it.

Funny thing is, despite all the so-called advantages China’s companies are supposed to have: lower operating costs and lower regulations among them, these stocks have never really delivered.… Read more

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Let’s dive straight into a trap I’ve seen many investors make in the past. And falling into this pitfall again today could cost you a 7.7% dividend in 2020, and considerable upside, too.

It involves China’s stock market, which gives all indications of being a bargain today. Too bad it’s anything but!

China Equities Get a Beatdown

Truth is, there do seem to be some screaming bargains in China-focused closed-end funds (CEFs) these days—like the Templeton Dragon Fund (TDF), which trades at a 12.1% discount to NAV. Or the Morgan Stanley China Fund (CAF), which sports the same 12.1% deal.

But many Americans have been lured into the China story in the past decade, when it looked like the Red Dragon would finally lurch ahead of the US … only to have it end in tears.… Read more

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Today I’m going to peer into my crystal ball and give you the scoop on where high-yield closed-end funds (CEFs) might be headed in 2019.

Then I’ll give you a proven way to zero in on the ones that are the best bargains for your portfolio now.

CEFs Come Out Flying

First, if you own stocks through CEFs (and if you don’t, click here to discover why these 7%+ payers are a retirement “must-have”), you’re already outrunning the market: my CEF Insider Equity Sub-Index—a great proxy for stock-owning CEFs—is up 13.7% since January 1, a nice lead on the S&P 500’s 12.3% gain.… Read more

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