| No. 1: Cybersecurity Over the past decade, we've watched China become one of the top cybersecurity threats to America. In fact, at the World Economic Forum in Davos, Switzerland, last month, FBI Director Christopher Wray said... The Chinese government has a bigger hacking program than any other nation in the world. And their AI program is not constrained by the rule of law and is built on top of massive troves of intellectual property and sensitive data that they've stolen over the years and will be used, unless checked, to advance that same hacking program - to advance that same intellectual property - to advance the repression that occurs not just back home in mainland China but increasingly as a product that they export around the world. As China's attacks become more sophisticated and more frequent, U.S. companies and government agencies will be forced to take increased measures to protect themselves... Which, of course, benefits the cybersecurity industry. That's why we've previously recommended the First Trust Nasdaq Cybersecurity ETF (Nasdaq: CIBR), which gives you exposure to 36 different cybersecurity companies. But if you want action from some of the top names in the industry... CrowdStrike Holdings (Nasdaq: CRWD) and Palo Alto Networks (Nasdaq: PANW) are two of the key players. [Editor's Note: Unfortunately, these companies won't protect America from this one sinister plan China has up its sleeve. See how American investors can protect themselves.] No. 2: Defense It's no secret... China wants to take back the island of Taiwan. The promise of Taiwan "reunification" has been one of Chinese President Xi Jinping's top priorities since he took office... And President Biden has made it clear that the U.S. would defend Taiwan if China chose to attack the island. Some military leaders - like Admiral Michael Gilday, the highest-ranking officer in the United States Navy - have even said that they "can't rule out a 2023 window" for a Chinese attack on Taiwan. If this were to happen, we'd be talking about a war much bigger than any we've seen in modern history. War simulations conducted by military experts at the Center for Strategic and International Studies demonstrated that such a conflict in Taiwan would cost the United States... The study concluded that the United States and its allies would lose dozens of ships, hundreds of aircraft and thousands of service members. (And that's still nowhere near as scary as China's sinister plot to destroy America. Go here for more details.) What would that mean for investors? As we saw when Russia invaded Ukraine, the defense sector would immediately become one of the hottest sectors in the market. (In fact, it was the fourth-hottest industry in 2022.) And even if we don't actually reach the brink of war... America's military-industrial complex is almost certainly preparing for the worst. Defense stocks like Boeing (NYSE: BA), Lockheed Martin (NYSE: LMT) and Raytheon Technologies (NYSE: RTX) are typically great bets when the U.S. military gets involved in situations abroad. But to get more exposure across the industry, check out these two sector-based ETFs: - iShares U.S. Aerospace & Defense ETF (CBOE: ITA)
- Direxion Daily Aerospace & Defense Bull 3X Shares (NYSE: DFEN).
No. 3: Mining As the relationship between China and the United States continues to worsen, we could see a huge disruption in the global mining industry... Specifically, mines producing rare earth minerals. Rare earth minerals are needed for technologies such as displays, lighting systems, power generation, fuel cells, hydrogen storage, rechargeable batteries, and the permanent magnets used in electric and hybrid-electric vehicles... AND they're heavily used by the U.S. military for weapons, targeting lasers, communications systems, airframes and aerospace engines, radar systems, optical equipment, sonar, and electronic countermeasures. The problem? Currently, China mines 63% of the world's rare earth minerals. In fact, Politico recently reported that a conflict with China would leave "the U.S.'s access to rare earths, a critical market still dominated by China, highly vulnerable." But in recent years, U.S.-based mining companies such as MP Materials (NYSE: MP), Lithium Americas (NYSE: LAC) and Piedmont Lithium (Nasdaq: PLL) have made huge strides in expanding mining operations in North America... And in the event of a deeper trade war, these companies would be called upon to supply the U.S. economy. If you're looking for an ETF to give you exposure to many companies involved in producing, refining and recycling rare earth minerals and strategic metals... The VanEck Rare Earth/Strategic Metals ETF (NYSE: REMX) is already up 15% for the year and provides exposure to 25 companies. But don't lose sight of the No. 1 risk you should prepare for... A Golden Opportunity While these three industries could provide investors a golden opportunity to profit from growing U.S.-China tensions... None of that will matter if China is able to execute its plot to destroy America. Top military and intelligence officials are sounding the alarm about this growing threat that would almost instantly cause the next Great Depression. Investors should heed this warning now and act to protect (and potentially even grow) their assets. Go here to see the disturbing details. Good investing, Karim | 
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