The Tycoon Report

Fat Yield: JACQUES COUSTEAU COULD NEVER GET THIS LOW!

Man, oh man, do I see money lying on the table.

All right, guys and gals, no more games; we have to get serious. I gave you two recommendations so far in a couple of other previous commentaries.  The first was a bond, and the second was a stock (my physiologist always told me that I was eclectic,) and now I will mix it up again.

The question that I ask myself every time I blabber to you is, “Where can we put our money and get a more than adequate return for the amount of risk that we take?” As I always say, risk and reward go hand and hand, so we have to be willing to go for it. The team at Tycoon Publishing has been trying to get me to write an investment newsletter for a while now, but I have told them absolutely not.

I have too many other things going on in my life right now, both personally and professionally; this may change in the future. For now, I am content with my boring life and writing once a week.

Anyway, enough about me; let’s talk about how to make those greenbacks ...

• That stuff that you stress out over.
• That stuff that you obsess over.
• That stuff that is used to buy goods and services.

We’re going to try a different strategy this time: we are going to answer some questions, and arrive at an investment decision together.

1.    How many people are there in the world?

2.    How many people are in China?

3.    Is China’s economy growing at break-neck speed?

4.    Do Chinese people eat?

5.    Do Chinese people sleep?

6.    Do Chinese people drive?

7.    Do Chinese people need energy?

8.    Do Chinese people need banks?

9.    Do Chinese people need insurance?

I could go on and on, but you get the point, right?

As I have said before, there are about 6.5 billion people in the world, and China has about 1.3 billion of them.  I want you all to BUY an exchange traded fund (ETF) that mimics or owns approximately 25 of the LARGEST & MOST LIQUID Chinese companies.

In other words, if you truly believe that the Chinese economy will continue to go North instead of South going forward, then you should put some of your money here.

Here is the information:

NAME OF ETF: iShares FTSE/Xinhua China 25 Index Fund SYMBOL: FXI EXCHANGE: NEW YORK STOCK EXCHANGE (NYSE)

The price at the time you read this should be about $70 per share.

I don’t want to sound like a broken record, but don’t forget about asset allocation; in other words, don’t put all of your eggs in one basket.

Secondly, don’t forget to use a put option as insurance with this or any other recommendation (see my past articles for more clarification).

Until the next time my friends. God Bless you and your families.

Bon Voyage ...