Why you HAVE to own Alibaba & TenCent for the china consumption opportunity

 In Dynamic Brands

This new era in Chinese shopping offers a glimpse into the likely future of retail around the world. More than $413 billion of goods will be sold through social e-commerce in China by 2022, an almost fivefold increase from $90 billion in 2017, according to researcher Frost & Sullivan.

We live in the U.S. and 72% of our GDP comes from consumer spending – you HAVE to have a dedicated allocation to this theme in your portfolio.

NOTHING IS MORE PREDICTABLE THAN A CONSUMERS PROPENSITY TO SPEND

There’s an even bigger opportunity: China consumer spending. Even bigger, Asia consumer spending. Shopping and paying for merchandise is completely different in China/Asia vs the U.S. Knowing that, you have a leg-up on how to make money investing in the winners. There will be lots of winners but 2 of the biggest are Alibaba (BABA) & TenCent (TCEHY).

Here’s the link to a great article from Bloomberg on the spending that happens, how it’s done, and how you pay…Hint, it’s all mobile and social! Click the image to read this great article.

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Eric Clark, Portfolio Manager
Eric serves as a Portfolio Manager and a member of the Investment Committee at Accuvest Global Advisors. His focus is on Accuvest’s suite of Dynamic Brands equity strategies. As a member of the Investment Committee, his responsibilities include research, investment analysis, technical analysis, macroeconomic commentary, and portfolio strategy & implementation. Eric also leads the sales, marketing & distribution efforts of the Dynamic Brands business line. Eric has 25 years investment experience. Eric is a frequent writer about the power of the consumer spending theme and global consumption trends. He is a brand consultant and leads the Alpha Brands Consumer Spending Index committee. He holds the Series 7 and 66 licenses.
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