[US-China Relations Improves] Here are the Best Stocks to Buy

Does this mean Chinese stocks are worth considering now? Find out inside. Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [Take Action Now to Safeguard Against the Dollar's Imminent Decline]( The truth is that the stability of the dollar is eroding rapidly, influenced by a series of pressing factors that have made headlines worldwide. Skyrocketing national debt, persistent inflationary pressures, and a government struggling to implement effective measures all serve as clear signals of an impending collapse. The implications of such an event would be nothing short of catastrophic.[Go HERE to Learn More]( By clicking the link you are subscribing to the American Wealth Investing Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( 2 Stocks with Potential Upside as U.S.-China Relations Improve  Hi Traders,  Brace yourselves, financial aficionados, because the recent rendezvous between President Xi Jinping and Secretary of State Antony Blinken might just be the soothing balm the world needs to quell the anxieties surrounding the US-China relations, and eventually become the catalyst for some long-term upward movements in the stock market.  We might be jumping the gun here a little, but the high-profile diplomatic exchange surely presents a glimmer of hope.  Could this potentially reinvigorate the Chinese stock market, which currently seems more like the tortoise than the hare compared to its European and American counterparts?  The answer might just lie within the fortune cookies of two titans in the Asian market – Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU).  A quick look at their performance graphs will show you that they're currently playing limbo with their 2020 and 2021 highs. Could it be that they are just biding their time and gearing up to soar?  Let's delve a bit deeper.  First off, Alibaba. They've been playing musical chairs with their CEO and have been shaking things up a bit within their structure.  However, the stock hasn't managed to dust itself off and leap back over that crucial $100 hurdle. According to our fair value crystal ball, Alibaba should be dancing around the $143 per share mark. But alas, they've not yet twirled their way to those lofty heights.  But wait, let's not judge the book by its cover.  Upon a side-by-side comparison with its contemporaries and direct competitors, Alibaba seems to be more of an Empress Dowager than a Cinderella - it's looking a tad bit overpriced.  Looking at some crucial digits from the end of 2022, we see a rising revenue trend and growing earnings per share.  Throw into the mix a commendable balance sheet and an above-average cash flow yield, Alibaba could just find the magic carpet to break past that $100 ceiling, given the markets stop throwing tomatoes and start showering roses on their new corporate structure.  Next up is Baidu. The discrepancy between the analyst outlook and the math model's prediction is a bigger gap than in a misaligned jigsaw puzzle.  But one thing both agree upon is that Baidu, at its current rates, is a bargain.  Upon closer inspection, though, Baidu seems to be wearing a bit of expensive lipstick, compared to its counterparts.  However, looking at the other metrics, including a rise in revenue but a fall in earnings per share, we see that Baidu has a bit of a rough patch. Despite this, signs of a comeback are evident.  So, here's the million-dollar question: what's the verdict?  Well, despite some roadblocks, Alibaba and Baidu are both standing strong, with Baidu's cash flow yield being a tad bit weaker.  Both companies show a robust balance sheet and with a few Band-Aids applied to the income statement, things are looking up.  As the Chinese equity market stirs from its slumber, both companies show potential for a growth spurt, promising some juicy double-digit yields for those investors patient enough to see the story unfold.  But hey, who are we to predict the future?  Only time will tell. For now, let's keep our popcorn ready and enjoy the unfolding drama of the financial world. Keep on keeping up!  John @ Traders on Trend  (In the next article: Is the stock market suggesting a rebound and dismissing the possibility of a consumer-led recession? ? Find out below! 👇) Sponsored [Protect Your Wealth from Inflation - Your Survival Guide]( Inflation is a silent killer of your wealth. You may be losing more money than you realize, and it could only get worse. Don't wait until it's too late to take action. [Go HERE To Learn How to Protect Yourself from Infl]( By clicking the link you are subscribing to The Investors News Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED Stock Market Signals Recovery, Dispels Consumer-Led Recession Fears  The financial storm everyone has been forecasting may have quietly passed us by already, and we might be in the safe harbor of a recovery, or maybe even a growth cycle.  You're surprised? So am I!  Well, if we're to believe the whispers of the stock market, that's the tune it's humming.  You see, the recent strength of the consumer discretionary sector, when measured against the broader market, has been quite remarkable.  When we plot a relative strength chart (which, by the way, simply compares how one financial instrument fares against another), we can see that the Consumer Discretionary Select Sector SPDR exchange-traded fund (XLY) has been giving a stellar performance, outshining the S&P 500 ETF (SPY) since the end of last year.  It's like watching a sports car race: XLY is the red Ferrari that has zoomed ahead by 28.8% this year, leaving the S&P 500's 14.9% rally in its dust.  This contradicts recent earnings reports from major retailers like Target, Home Depot, and Dollar General, all of which have been lamenting about dwindling demand for discretionary items. Hmmm, interesting!  Quoting Ryan Detrick, chief market strategist at Carson Group, "The consumer continues to be the star of the show and the market is sniffing it out."  And the charts seem to be echoing this sentiment. With a pattern of higher lows and higher highs, we might just be in the midst of an uptrend.  To put the icing on the cake, the recent better-than-expected retail sales report was like a pat on the back confirming this trend.  Given that consumer spending represents a staggering 68% of the U.S. GDP, the consumer’s robust health is the lifeline of the economy.  Thus, it seems that the much-anticipated consumer-led recession could have been over and done with six months ago.  (article continues below) Sponsored [This Trade Has Paid Out 99.1%]( We’ve made THIS simple trade over and over again… for years. The result? It’s cashed in winning trades 99.1% of the time. We call it the “310F Trade.” Getting into this “rinse and repeat” trade each Tuesday… could double your money by Friday. Sound too good to be true?[See how we’ve done it, week after week...for YEARS]( [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  Now, there are skeptics out there questioning the reliability of the XLY's performance. They point out that only two of its 53 components, Amazon and Tesla, constitute more than 40% of the ETF’s weighting.  Sure, Amazon, with a 25.0% weighting, has raced up by 50% this year, and Tesla, with an 18.7% weighting, has skyrocketed 113%. But should this really invalidate the ETF’s message? I don't think so.  Detrick maintains that while Amazon and Tesla's performance indeed contributes significantly to XLY's triumph, they aren't the only players.   Other XLY components like cruise operators, home builders, auto makers and sellers, travel bookers, and casino operators have also had an impressive run, outpacing the S&P 500.  Detrick also rejects both the "hard landing" (a severe recession or another drastic stock market selloff) and the "soft landing" (a mild recession) scenarios for the economy.  Instead, he’s in the "no landing" camp. He insists, "As long as the consumer is strong, we're not going to have a recession."  Another chart pointing towards the recession's end is the Nasdaq Composite's performance compared to the Dow Jones Industrial Average.  It has exceeded the Dow by more than 10 percentage points at the end of five of the last five recessions. In the first quarter, this outperformance was even more pronounced, exceeding 13 percentage points.  This should be taken as a positive sign for the economy, according to Craig Johnson, chief market technician at Piper Sandler.  Let's keep our fingers crossed and our eyes on the charts. If stocks keep performing well, people will feel wealthier, and that's bound to have a positive ripple effect on the economy.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. 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