A financial news junkie can rattle off the day's biggest earnings beats or the latest soundbite from the Fed.
But he'll never score market-beating gains by staring at a glowing TV screen all day...
Investors have a bad habit of ignoring some of the market’s strongest trends simply because they don't know much about the companies responsible for the gains. They're caught up in the big narratives the media pipes into our skulls every day.
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Everyone you know has a Netflix account. You ask your friends not to mention spoilers if you haven't gotten around to streaming the latest season of Daredevil. The 46% gain Netflix has posted so far this year makes sense. The company must be growing like a weed.
Same goes for Facebook. The world's population is turning into smartphone zombies. We can't walk from our driveways to our homes without burying our noses in our phones to complain about politics on our Facebook walls or like a few Instagram posts. Facebook is making money hand over fist. The stock is up 50% year-to-date. Mark Zuckerberg might run for president. Why not? Stranger things have happened...
Do I even need to bring Amazon into this conversation? When was the last time you didn’' have a pile of Amazon boxes loaded up and ready to go for recycling? Amazon raked in nearly $40 billion in sales during the second quarter of 2017. The company completely controls the U.S. retail market. Of course its stock is up more than 30% this year.
Most investors think these are the best performing stocks on the market this year.
But most folks are dead wrong...
There’s one group of stocks that’s stomping all over the gains of these household names in 2017. If you want to outperform Facebook and Netflix, there's only one place to turn...
The biggest momentum stocks of 2017 are all coming from one place: China.
China's tech ADRs are ripping higher at a furious pace. Our trading portfolio has looked like a Chinese embassy for the better part of 2017. If you've followed along this year, you already know that we’ve booked gains on Momo Inc. (Nasdaq: MOMO). We were able to harness a fast 50% gain in just a few weeks with this quick trade. And MOMO isn’t the only Chinese name lighting up the market this year.
Alibaba (NYSE: BABA) is another solid winner from our trading portfolio. We cashed in our chips on this trade in early May for gains of 23%. The stock continues to prove all the naysayers wrong as it pushes to new all-time highs once again this month. In fact, Alibaba stock has posted gains every single month of the year so far. It's now up an incredible 80% in 2017.
Our open positions in Chinese ADRs are also screaming higher.
58.com Inc. (Nasdaq: WUBA), the most popular of China's Twitter-like microblogging platforms, is sneaking toward its highs this week (we booked gains on half of our positions a couple of weeks ago). Baidu Inc. (Nasdaq: BIDU) also shook off the cobwebs last month, blasting to new 2017 highs. "China's Google" also gave us an opportunity to take partial gains last week as the stock blasted out of the choppy range that trapped it most of the year.
China's internet economy is beginning to boom. Now that the market's starting to catch onto this huge trend, you have an opportunity to pull in some serious gains by betting on Chinese tech stocks.
The herd is quickly beginning to catch onto these plays. Now's our shot at getting a foot in the door before another big run...
This article originally appeared on Daily Reckoning.