Last Great Chance to Invest Before the Crowd

in #finance6 years ago

A major movement will occur in the markets this year when MSCI adds Chinese A-shares to its indexes.

This change will affect global stock market investors even if you do not own stocks directly. To maintain their mandatory exposure to benchmarks, Large institutional investors such as Pension Funds, Insurance Companies, Mutual Funds, ETFs, etc. have to allocate to Chinese A-shares. The China A-share rally so far this year is just getting started.

The large institutional investors will wait for the index to activate the required change before making purchases. This is expected sometime between now and the end of the year.

The China A-share stock prices will soar if history repeats. The last two countries MSCI added were Qatar and the United Arab Emirates (UAE). As you can see below these countries had large rallies.

UAE stock prices doubled while Qatar increased by only 50%.

The recent correction is a rare opportunity to buy Chinese stocks at a significant discount. Buy in now before the Institutions start buying billions or trillions of dollars of Chinese A-share stocks.

An easy one click way to buy this exposure is through KraneShares Bosera MSCI China A Share ETF - KBA.

Cheers to your health and wealth.

Disclosure: I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

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