How China Could Upend U.S. Stocks

We’re in serious danger of seeing shortfalls in key sectors that range from consumer goods to defense.

In the last four years, the U.S. labor market added 136,000 manufacturing jobs…total.

Joe Biden failed to deliver the blue-collar renaissance he promised.

No wonder labor unions have hesitated to endorse his 2024 presidential bid.

Without a strong manufacturing sector, we’re at the mercy of China, one our largest trading partners.

And it’s about to stab us in the belly.

The next few months will determine the future of our economy for the next decade.

China’s economy is in free fall.

The product shortages we saw during COVID-19 will seem like a ripple compared to the coming onslaught.

We’re going to explain precisely what’s happening and which sectors are in danger.

Plus, we’ll share with you an EXCLUSIVE INSIGHT from industry veteran Jim Woods that directly addresses these issues, and more importantly, states how to turn pain into profits.

China’s Uncontrolled Descent

In 2021, China’s economy grew by 8.4%.

Economists expect it to barely hit 4.5% in 2024.

Normally, the government would pump liquidity into the market to juice consumer spending.

According to reports, that’s what the Chinese government plans to do in early February.

But it may not be able to.

A week ago, China’s stock market began to flounder.

To stem the bleeding, regulators limited short sales while moving aggressively to shore up the yuan… the exact opposite of what the government plans to do in February.

For the last several years, China has been covertly and overtly manipulating its currency, something Jim Woods has identified as a critical problem.

You can only do that so long before it comes back to bite you.

And that’s what’s happening to China right now.

International investors have better options than an emerging economy that’s past its prime.

While the government has tried to buoy demand through new relationships with hostile powers like Russia and Iran, they have only a fraction of the firepower held by developed nations.

Yet, that’s only part of the problem.

Internally, the country faces an identity crisis.

Half of its younger population is unemployed… by choice.

They don’t believe they can improve their lives.

And why would they?

They’re being offered manual labor jobs in a low-growth economy.

Once-flourishing property values are flagging, with many bad loans becoming shadow zombie debt — no foreclosures, but no relief either.

It’s led to a sizable decrease in exports.

2023 was the first year China saw exports decrease since 2016, down 4.6% from 2022.

In July 2023, exports contracted by 14.5%, the worst since the pandemic.

Now, some of this was what we wanted to see.

U.S. “friend-shorting” helped reduce bilateral trade between the United States and China to 13.9% in 2023, while trade between Mexico and the United States increased by 15% of the United States’s total imports.

While this is a step in the right direction, China still owns far too much of our supply chains.

And there are a few sectors that are in real danger.

A Hard-Landing Ahead

You’ve probably heard rumors about softening demand for electric vehicles.

Some of it is driven by higher prices. Some of it is due to garbage automotive products.

But there’s no doubt that the renewable energy sector is in for a rough road ahead.

You might remember those tariffs Donald Trump slapped on Chinese solar panels.

Joe Biden never lifted those.

And there’s a good chance a second Trump term would all but ensure they never make it into the United States again.

The knock-on effects are likely to hit broader durable goods as well.

But the industry we see as a sleeper problem is aerospace and defense.

While the majority of these products are made at home, the increasing complexity of these systems relies on components and raw materials from China and a myriad of other countries.

China knows this. And the Chinese are more than willing to flex their muscles when and where they see fit.

Rare earth metals are a particular risk that could upend defense products from missiles to lasers, as well as vehicle-mounted systems like tanks.

Right now, we have no replacements.

If China cuts us off, we’re screwed.

Thankfully, there’s a clear way to turn this chaos into cash.

A Veteran’s Expertise

Jim Woods is considered one of the premier stock pickers, ranked #1 by tipranks.com out of over 7,000 traders.

His decades of experience in the markets, coupled with his military experience, gives him a unique perspective on economics and investing.

Last week, we started a conversation with Jim after he released his bombshell report on China.

What really surprised us wasn’t how he pinpointed the issues, but that he also provided a clear plan to turn the tables.

He sees how China’s central government has manipulated the economy, its currency and why.

His perspective is incredibly insightful and available for you to read RIGHT HERE.