Three Winners from China's Collapse

Editor's note: Today in Empire Financial Daily, our friend and colleague Andrew Zatlin from our corporate affiliate Moneyball Economics continues the conversation on China – this time, with the beneficiaries of a meltdown in the country's economy... Yesterday, I revealed to you that China is about to collapse... As I explained, the country's economy is […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] Editor's note: Today in Empire Financial Daily, our friend and colleague Andrew Zatlin from our corporate affiliate Moneyball Economics continues the conversation on China – this time, with the beneficiaries of a meltdown in the country's economy... --------------------------------------------------------------- Three Winners from China's Collapse By Andrew Zatlin --------------------------------------------------------------- [Legendary Trader: 'This Is My No. 1 Play for the AI Boom' (NOT Nvidia)]( According to legendary trader Larry Benedict, who went 20 years without a single losing year and made $274 million for his Wall Street clients... Buying and holding hyped-up and popular stocks like Nvidia is NOT the right way to play this AI boom. He believes one alternative AI play could help you make the equivalent of an annual salary this coming week. [Click here to see the details](. --------------------------------------------------------------- Yesterday, I revealed to you that China is about to collapse... As I explained, the country's economy is a wobbly stool. And all three legs propping it up are close to crumbling. I also said that as with any major event, we'll soon discover the winners and losers from such a meltdown. So in today's essay, let's talk about who's going to win. I'm primarily focused on three specific opportunities... The first is the U.S. bond market... You see, China depends on exports. But exports have fallen 14% year over year already, and there's more turmoil ahead. How can the country put a stop to this bleeding? One way is to get its goods out there on the market – in other words, increase exports... And to do that, China will need to cheapen the prices of its goods. The quickest way to lower these prices is simply to devalue the renminbi, the Chinese currency. To date, the renminbi has fallen about 7% against the U.S. dollar. But here's what happens next... To further devalue the renminbi, China will need to start buying another currency – in this case, the U.S. dollar. In the end, that will create much higher demand for U.S. Treasurys and create a robust bond market. Speaking of bonds, keep this in mind: As demand for bonds goes up, bond yields start to go down. Remember that bonds prices and yields feature an inverse relationship. If bond prices are going up due to demand, there isn't as great a need to pay lofty interest rates to encourage people to buy them. That's why when prices go up, yields go down. But here's the thing: If yields go down, that translates to softening inflation! And who's set to benefit from this? That leads us to our other opportunities... --------------------------------------------------------------- Recommended Link: [This guy is in for a BIG surprise... and so are YOU!]( The guy behind me doesn't realize that the money he's pulling out of the bank is radically different from the money he pulled out last month. That's because the Fed recently implemented the most radical upgrade to the dollar in decades. And most people don't even know it happened! But with $73 trillion now up for grabs, the opportunity for investors today is enormous. [Click here for all the details about this radical new dollar upgrade... including my No. 1 moonshot pick of the year](. --------------------------------------------------------------- Two beneficiaries of softening inflation are U.S. consumers and U.S. companies. Let's start with consumers... Consumers will benefit from having a bit more money in their pockets. And you can bet that they'll be ready to spend it. The question is, where? You might think retail is set to profit from this extra spending. And while that may be the case, be careful before investing here... Not all retailers stand to benefit from a little extra spending. Instead, look to sectors like travel and leisure. After all, if the average consumer has an extra $100 in his pocket, he's likely to treat himself to a nice dinner, a few drinks, and maybe a trip to the casino. As for companies... Manufacturers depend so much on Chinese goods being shipped in. And if China has to lower the cost of these goods to increase export traffic, that will translate to huge savings for U.S. companies. A key decision for these companies will be how they use these savings to their advantage. Among other possibilities, they could either keep the savings as extra profits to present as an earnings surprise, lower prices on the things they sell, or keep prices the same but pass the savings along in the form of rebates – another savvy way to encourage more foot traffic. Bottom line: Companies that rely on Chinese goods to build the products they make are sitting pretty and definitely make my list of "winners." Regards, Andrew Zatlin Editor's note: According to Andrew, a radical shock to the U.S. dollar is coming – one that could occur on December 3. It's something that stands to have a massive impact on every American... Get the full story – including what you need to do to prepare – by [clicking here](. --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2023 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 1125 N. 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