The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
Longtime readers know it's one of the highest-conviction ideas of Steve Sjuggerud's career...
We're referring to his bold prediction that global index provider MSCI would agree to add domestic Chinese stocks – known as "A-shares" – to its emerging markets index last year... and that these stocks were practically guaranteed to move higher as a result.
Today is one of the most important days in the history of investing... This afternoon, MSCI – the leader in global stock market indexes – will announce the results of its annual meeting...
I predict – for the first time in history – MSCI will finally include Chinese A-shares in its global indexes. This is a big change. And it likely affects you, even if you don't realize it. You are about to start owning local Chinese stocks in your pension fund – for the first time ever.
You see, right now, roughly zero percent of American retirement assets are invested in local Chinese A-shares. But that will all change when MSCI includes local Chinese stocks in its indexes...
Right now, 94% of U.S. pension funds that are invested in global stocks are benchmarked to MSCI's indexes. So if you're a teacher, a firefighter, or anyone else with a decent pension fund, you will unknowingly start owning local Chinese stocks for the first time... very soon.
Of course, Steve was exactly right...
Later that day – at 4:30 p.m. Eastern time – MSCI made it official. It would begin to add Chinese A-shares to its benchmark emerging markets index approximately one year later in mid-2018.
More important, shares have rallied dramatically, just as Steve predicted. Despite recent fears of a "trade war" with China, subscribers who took his advice are up more than 20% so far.
But if you aren't among them, Steve has some great news: You haven't missed anything yet. He believes the biggest gains are still ahead...
You see, the first "tidal wave" of money into Chinese A-shares is about to begin...
Remember, MSCI only announced this move last June. But it won't actually start buying these stocks for another couple of months... And history suggests these stocks could absolutely soar in the meantime. As Steve explained in his latest issue of True Wealth China Opportunities last month...
MSCI handles changes to its indexes all the time. It moves countries up and down its rankings every few years.
The last two countries MSCI elevated were Qatar and the United Arab Emirates (UAE). Both were considered frontier markets – or developing countries that are too small to reach the next category – until MSCI announced in 2013 that it would re-classify them as emerging markets.
In both cases, these countries had massive rallies after MSCI's announcement through the day inclusion began. Take a look...
As Steve noted, these were significant rallies...
Qatar rallied more than 50% over this period, while the UAE nearly doubled.
But take another look at that chart. You'll also notice that the gains began to accelerate in April 2014. More from Steve...
The hype an index gets when the flood of money from MSCI is coming is huge. And the biggest gains tend to happen right at the end.
You can see it in the chart below. Most of the gains for both indexes happened in less than three months leading up to inclusion...
In short, both these indexes saw more than half their massive returns in the final few months before MSCI started buying.
This is great news for Steve's favorite A-share investments.
But it gets even better...
We mentioned the recent fears of a trade war between the U.S and China. Many of Steve's favorite China opportunities – including these A-shares investments – have fallen 10% or more as tensions have risen over the past several weeks.
But Steve believes these fears are overblown... In reality, Chinese stocks enjoyed a massive rally over the past year, and were overdue for a correction.
Tariffs are a convenient excuse, but Steve believes a real trade war is unlikely. As he explained in the March 26 DailyWealth
I believe all this "trade war" talk will go away...
I could be wrong, of course. But a trade war would only hurt both countries. Instead, I expect it's mostly posturing to get some sort of concessions.
Regardless, China's National Team will keep buying to prop up the markets. And big institutions will start buying soon, as the MSCI's inclusion is around the corner.
Let's get our money there first...
In other words, Steve believes the recent correction is a rare second chance to buy Chinese stocks at a significant discount, just before the MSCI "hype" rally begins. And it could be one for the record books...
According to news service Reuters, Chinese fund managers have slashed their equity exposure to the lowest level in 18 months. Even Chinese investors don't want to own these stocks right now... which means the rush back into A-shares over the next few months could be incredible.
Of course, A-shares aren't alone...
Thanks to the recent sell-off, all 22 of Steve's top China recommendations are "on sale," and he rates them all strong buys today. If you missed out on the big rally last year, this could be your last great chance to get on board this multiyear bull market.
To be sure every interested reader has one last chance to take advantage, Steve has agreed to open up his True Wealth China Opportunities service to new subscribers at the best price we have ever offered. But please note, this special offer will only be available until tomorrow night at midnight Eastern time. Click here for all the details
: Steve believes fears of a trade war between the U.S. and China give investors a fantastic buying opportunity right now. Folks who realize what's likely to come next – and follow Steve's advice – could see triple-digit gains... quickly
. We've put together a special offer to help you. But you need to act fast... It expires tomorrow. Get started here