We are apolitical in The War Room. Leave the politics at home!
Our mission is investing… in whatever will make us money.
However, we are not blind to the opportunities that politics and politicians can bring to the table!
And next week, one of those opportunities may arise at the Republican National Convention. We’re ahead of it in The War Room, and it’s something you may want to get in on as well.
President Trump at the Republican National Convention
Members are short the iShares China Large-Cap ETF (NYSE: FXI). Unless you have been living under a rock, you know that if there is one country President Trump dislikes (whether for real or just for politics), it’s China. He blames the country for trade woes, intellectual theft, the coronavirus, the plunge in the U.S. economy… the list goes on and on.
He is also trying to slam TikTok, the video app that Americans love, by forcing the sale of its U.S. operations to an American company like Microsoft or Oracle. And his cabinet members are looking to force the delisting of Chinese companies from U.S. exchanges, even warning colleges to divest from Chinese companies like Alibaba.
I don’t think it takes a rocket scientist to assume that the Donald and other Republicans will be bashing the hell out of China next week when they are on the big screen at the Republican National Convention. Expect night after night of China bashing.
And it’s not just the Republicans… The Democrats aren’t going to defend China either. They hold similar grievances against China’s ambitions.
In The War Room, members have taken a position that gives them a very low-cost entry to this play.
We placed a bet that Chinese stocks will be lower at some point between now and the inauguration – regardless of who is in The White House come the end of January.
About Karim Rahemtulla
Karim began his trading career early… very early. While attending boarding school in England, he recognized the value of the homemade snacks his mom sent him every semester and sold them for a profit to his fellow classmates, who were trying to avoid the horrendous British food they were served.
He then graduated to stocks and options, becoming one of the youngest chief financial officers of a brokerage and trading firm that cleared through Bear Stearns in the late 1980s. There, he learned trading skills from veterans of the business. They had already made their mistakes, and he recognized the value of the strategies they were using late in their careers.
As co-founder and chief options strategist for the groundbreaking publication Wall Street Daily, Karim turned to long-term equity anticipation securities (LEAPS) and put-selling strategies to help members capture gains. After that, he honed his strategies for readers of Automatic Trading Millionaire, where he didn’t record a single realized loss on 37 recommendations over an 18-month period.
While even he admits that record is not the norm, it showcases the effectiveness of a sound trading strategy.
His focus is on “smart” trading. Using volatility and proprietary probability modeling as his guideposts, he makes investments where risk and reward are defined ahead of time.
Today, Karim is all about lowering risk while enhancing returns using strategies such as LEAPS trading, spread trading, put selling and, of course, small cap investing. His background as the head of The Supper Club gives him unique insight into low-market-cap companies, and he brings that experience into the daily chats of The War Room.
Karim has more than 30 years of experience in options trading and international markets, and he is the author of the bestselling book Where in the World Should I Invest?
