We are still at the very START of the biggest investor bull run of our times. You’ve heard the numbers, you KNOW this is no fluke.

Public Transportations & Logistics

4 million car in 2000 –> 19 million car in 2005 –> approximately 40 million car in 2010 –> more than 130 million car in 2020    [Goldman Sachs]

China’s auto market grows 25% a year.

Financial Services

The number of credit cards increased 22.7% in 2006 with 50 million credit cards + 1.08 billion debit cards at the end of 2006     [People’s Bank of China]

All over China, banks will open, people will walk in & deposits will be made. TWO TRILLION DOLLARS are in the hands of China’s industrious savers & until now, only Chinese banks could tap into this amazing treasure chest. Today, U.S., British & Hong Kong banks will open accounts, take deposits, issue credit cards and authorize loans. In a land where the economy is growing at >10% and 40 cents on the dollar is saved by people who DISTRUST their own national banks, this is a day that investors will remember.

There are two main indicators to determine a stock market’s performance: liquidity and corporate earnings. A flood of money from exports and investments has boosted China’s liquidity dramatically over the past five years. And three consecutive years of double-digit economic growth generated even stronger corporate earnings. The strong liquidity and earnings combined with a high household savings rate (35%), rising inflation and a lack of other investment options have driven the Chinese stock market to new record highs almost every day during the past two months.

During the entire year of 2006, 3 million new retail brokerage accounts were established in China. But during the first quarter of this year alone, 5 million new accounts were established. That means growth in the first quarter was a staggering 65%! Last month, another record-shattering 5 million new accounts were set up. Interestingly, the average new account opened in 2007 is more than twice the size of the average account last year. This implies that novice Chinese investors entering the market now are both better educated financially and more affluent than investors who entered the market in years past.

Commodities, Energy & Natural Resources

China is world’s 2nd largest importer of oil, behind the U.S.
China is using up natural resources at an unsustainable rate.
China is already the world’s largest user of alternative energy resources (e.g. wind, water, solar power & etc) & construction materials (e.g. timber, steel, copper & etc).
All this steroidal economic growth in China & the Pacific Rim means just one thing for natural resources: increased for practically every natural resource imaginable.

China’s (together with India) demand for coal, iron ore, cement, grain, fertilizer, sugar & other commodities continues to drive strong imports of these raw materials, even as finished goods flow out to the world’s vast consumer-end markets.

China’s need for cement is equal to the entire output of the U.S. cement industry, 5 TIMES OVER. Duplicate this appetite into iron ore, coal, copper, natural gas, uranium, steel, gasoline, corn, pulp, almost any natural resource you can think of … and then … translate that need into investment opportunities, not only in China, but in Brazil, India, Europe, the U.S., Russia, Australia, even Africa … and you will begin to appreciate the extraordinary power of the 4 words: "BUY WHAT CHINA BUYS"

China’s per capita consumption of oil is ONE FOURTEENTH that of the U.S. It is ONE TENTH of that of Japan or South Korea. When industrialization BEGAN in the U.S., per capita consumption was one barrel. Now it is 30. Consumption in China is STILL just under 2 barrels. Simply doubling it to FOUR barrels will put global oil supplies in a jam. Doubling that to 8 — remember the U.S. uses 30 — makes petroleum geologists shake their heads. No one knows where all that extra oil will come from. If you understand the scale of the industrialization of China, it is easy to see why PetroChina is Warren Buffett’s biggest overseas investment.

The find for oil is massive. The extent of it and even its exact location are closely-guarded secrets. But it is destined to become legendary. Liwan 3-1-1, as this new oil field is called, lies just 155 miles south of Hong Kong, 5,000 feet below The South China Sea.

In oil business jargon, Liwan 3-1-1 is an elephant — absolutely enormous — and it effectively doubles the oil reserves for its owners. And this extraordinary find is just the beginning. Amazingly, the exploration company struck oil the first time it sank a drill-bit!

Analyst team in China informs that Liwan 3-1-1 could be China’s "Spindletop." A find of such magnitude, it could shift the balance of power away from the Middle East. At the very least, it suggests that the South China Seas will become to China what Texas & the Gulf of Mexico have been to U.S. economic growth for the last century. Not only would this stabilize energy prices globally, but it would ignite a fresh China boom!

In China, solar power is every bit as important to the "Buy What China Buys" concept as oil, gas, nickel & aluminum. Solar is a $5 billion market racing towards $50 billion. Clean, local, renewable & reliable — it is the ONE initiative every politician from Japan to Germany has been able to agree upon. In the U.S., there is already a waiting list for solar panels for homes. Plus Wal-Mart, Target & other retailers are feverishly turning the roofs of their big boxes into solar power substations.

In China, there is an added incentive to go solar. Government-supplied power is intermittent & people in rural areas live in a state of perpetual brown-out. A solar panel on the roof is becoming widespread among the emerging middle class. Laborers, too, save for a solar-powered hot bath at the end of the work day. Given these factors, the projection for the solar panel market’s 10-fold growth is conservative.

China is driving down the price of solar energy much faster than Westerners realize. Economics of scale, improvements in efficiency, plus the industrial demand for energy that’s reliable all add up to a business that’s doubling by 2010.

The tiny China company at the forefront of this initiative will have $1 billion in sales in the next 2 - 3 years. With a 20% margin as a result of low, low production costs, plus a home-field advantage in one of the world’s fastest-growing alternative energy markets, this is a possible double in 2007 & ten-bagger by 2009.

Industrialization

The most spectacular example of China’s industrialization & the wealth created is surely the Three Gorges Dam. The Hoover Dam (in the U.S.), you’ll recall, created a new regional economy & raised a city, Boulder, out of the desert.

So consider: The Three Gorges project is eight times bigger than the Hoover Dam! It is arguably as important for China’s economic emergence as the Erie Canal was for America at the dawn of the Industrial Revolution.

Investing in the mining operations that have supplied the raw materials for this huge project - The Australian miner BHP Billiton, the Chilean miner Rio Tinto & the smelter China Aluminum all averaged more than 30% gains in 2006.

Making new moves to profit from one of the biggest construction projects on the face of the planet: Beijing’s preparation for the Olympics in 2008. Can the Olympics force up the price of nickel, aluminum & stainless steel? That is exactly what we are seeing right now, as these three commodities get sucked out of mines, smelters & mills in every corner of the globe.
     - Hot rolled coil & sheet steel prices have already tripled.
     - Copper futures have doubled.
     - China is now the world’s biggest user of nickel & prices are hitting record highs, as much as 6% a day.
     - Aluminum output in tiny Iceland has increased so much, it has tripled the island’s economic growth!

Unfold the untold story of China’s amazing industrialization. It gives you a winning strategy for oil, gas, gold, aluminum, nickel, zinc, copper & many other resources that are now hitting 25-year highs. This may be the biggest investment opportunity of our lifetimes — maybe several lifetimes.

Internet

Being one of the world’s largest online gaming markets, Chinese players are very serious about gaming. Hardcore gamers often show up at cybercafes with pillows & blankets to prepare for marathon session that can last up to 24 hours. China’s online gaming market is currently worth US$1 billion with revenue growth an impressive 74% in 2006. China has 40 millions gamers, 90% of whom play online games distributed by the U.S.

In 2004, the entire Chinese Auction market was about US$561 million & in 2005, that number jumped 200% & reached US$1.7 billion. In 2004, there were roughly 15 million online auction users in China. By the end of 2005, that number is almost 30 million - a 100% increase. E-commerce, in general, rose over 60% from 2004 to 2005 - growing from approximately US$43 billion in ‘04 to almost US$70 billion in 2005. Baidu.com up 400% at its IPO. Netease up 11,000% in 5 years, and Internet usage at 63% annualized growth.