The Coming Backflow Boom

The Investment Opportunity of the Millennium

The savvy investor John Templeton seized opportunities wherever he found them. And he built his small investment shop into the renowned money management firm Templeton Investments, now part of the $27 billion investment giant Franklin Resources. Before he died, Templeton made it absolutely clear what he believed was the world’s single greatest investment opportunity: The Coming Backflow Boom.

You’ll be better prepared to profit from the new Backflow Boom when you understand where the last one was… and how he and his followers profited from it.

In the first two decades after World War II, Japan had a reputation for exporting worthless junk. It’s hard to imagine in today’s world – dominated by names like Sony, Toshiba, Canon, Honda and Matsushita – but the term “Made in Japan” used to stand for shoddy, poorly constructed goods.

But the Japanese are clever, hard-working people. Manufacturing quality gradually improved. Consumers around the world were soon buying well-made and attractively priced Japanese cars, cameras, televisions and other electronics in droves.

As a result of their phenomenal export success, the Japanese people became more and more prosperous. And then, beginning in the late 1960s – Boom! – the backflow began.

Instead of cash pouring into Japan simply for exports, money began rushing in to finance imports… and all manner of domestic goods and services.

The demand for raw materials, machinery, and consumer goods of every description skyrocketed to unbelievable heights…

And so did the share prices of those select companies in the thick of it.

Templeton foresaw that a wildly successful export nation will eventually experience a transformational Backflow Boom, as surging exports eventually create a tremendous new market for domestic goods and services.

When hundreds of billions start cascading in from overseas, it makes well-placed investors millionaires… practically overnight. In short, it’s the backflow that creates the biggest opportunity of all.

Templeton bought the best-positioned, most undervalued companies he could find – the ones that would benefit the most from the backflow – and created unparalleled wealth for shareholders

Please understand, the new Backflow Boom has little to do with Japan. What happened there is old news. I only wanted to demonstrate how the process works… and how hundreds of investors like you are about to become rich.

The Backflow Boom is only just now igniting in the world’s fastest-growing major economy: China.

The Most Astonishing Opportunity On the Planet

Everyone knows about China’s outlandish growth in exports. That’s no secret.

However, almost totally under the radar, China is transforming itself from a world-class exporter into one of the world’s biggest importers.

In short, the Backflow has begun.

And the short-term profits should be nothing less than astonishing. Yet only the best-connected investors will have any idea how to play it.

So let me show you. Consider, for example, that:

1. China already imports nearly as much as it exports. In 2009, China exported $1.2 trillion worth of goods. But it also imported $1.01 trillion worth. (I’ll bet you didn’t know that.) Understand where this mountain of cash is headed in the weeks ahead and you could make ridiculous amounts of money.

2. Vehicle imports are up 240%. Chinese consumers now buy more automobiles each year than Americans do and have become the world’s largest automobile market. And I can’t wait to tell you about a tremendous surprise coming in this sector.

3. China’s oil production is massive. (It’s currently number four in the world.) Yet it still meets only half of the country’s demand. Learn which energy importers and transporters to buy now and watch your net worth gap higher in the months ahead.

– 1/3 the world’s steel is going to China…

– One half the world’s concrete is being consumed by China…

– 50-70% of the world’s construction cranes are in use in China…

– Despite being the largest producer of grain in the world, China is about to become the largest importer of agriculture products…

– China is consuming exponential amounts of oil – more oil than every other country except the U.S.

4. You probably know that China’s environment is a mess. The rivers are dirty. I’ve been in Beijing when you can look directly at the sun through the smog and when cars drive with their headlights on… at noon! But do you know which companies are about to be awarded the big contracts to clean things up? My contacts have never failed me yet. And – unlike in the West – the contracts don’t go to the most competitive bidders. Let me show you who will be the biggest beneficiaries… so you can trade them for potential maximum short-term profits.

5. The Chinese government has allocated several trillion yuan to spend on bio-fuels and other clean energy alternatives. Money is about to hit this sector like it’s coming out of a fire hose… These are among the first companies you’ll want to buy.

6. China is already the world’s second-largest consumer of luxury goods! It buys 27.5% of all luxury goods sold worldwide. (I’ll bet you didn’t know that either.) Just wait until you see my latest play in this sector… it’s poised for an easy triple.

7. Have you visited China yet? I go to Asia on both personal and research trips many times a year. China is now the fourth-most popular tourist destination and will soon surpass France. You can make tens of thousands in Chinese tourism in the months ahead – if you know where to invest.

8. And the Chinese themselves – tens of millions of them – are now traveling abroad, too. It is estimated that 54 million tourists will vacation overseas this year. Companies now catering to them are poised to show blockbuster profit growth. Many of them will see their share prices rise several-fold in the months ahead.

9. Forget The Great Recession here at home. China’s economy is still red hot, doubling every six and a half years as it has for the past three decades. Growth like this sets the stage for phenomenal share-price growth in select companies.

10. While Americans and Europeans are singing the economic blues, consumer confidence in China is at record highs. The Chinese are rapidly buying homes, cars, computers, cell phones, appliances, financial services, and health care services. This is the heart and soul of The Coming Backflow Boom. Buy the right stocks in these sectors and you could be well on your way to earning over $165,360…

11. Most Americans are stuck in the past, complaining about China’s trade imbalance with us. Yet China recently posted a monthly trade deficit of more than $7.2 billion. You didn’t know that, either? That’s what you get for listening to the mainstream media.

12. And it’s not just trade with the U.S. China is on a shopping spree from the rest of the world, too. Its trade deficit with Korea, for example, is up 76%. Its trade deficit with Taiwan is up 79%. And its trade deficit with Japan just tripled. This is the Backflow Boom at work… and it’s happening now.

13. Credit Suisse recently reported that middle-class Chinese households saw income rise 98% over the last four years. (Compare that to the U.S. or EU) I intend to make my readers a fortune in consumer stocks there in the months ahead.

14. And here’s the kicker. Credit Suisse also reports that China’s share of global consumption will grow from 5.2% of world GDP today to a whopping 23.1% in less than ten years – $15.9 trillion! Based on 20 years in the region, I actually think that’s low.

China’s consumer market is poised to overtake the U.K. and Germany to become the world’s third largest within two years… and replace Japan as the second largest within five years.

This is good to know, of course. But it doesn’t begin to tell you where to put your money to strike it rich in The Coming Backflow Boom. To capitalize on that, you’ll need someone who knows the territory like the back of his hand.

And I haven’t even told you one of the best parts.

As you may know, China’s currency is grossly undervalued. They have been keeping it artificially low to boost exports and reinforce the domestic market. But now that imports will soon exceed exports, this is no longer such a benefit.

China’s currency will almost certainly rise in the months ahead. In fact, Chinese officials have already stated this will happen. And that will take the value of your China holdings higher still.

Source: Keith Fitz-Gerald
More details here: My Own Portfolio