If it's not one thing with these markets, it's another. For much of 2021, the stock market has been pushed and pulled by the prospect of spiking inflation, falling and then rising COVID-19 case numbers, and the ever-changing shape of the economic recovery. Yet, suddenly, those factors have taken a back seat and new forces are pushing stock prices around. This week saw an intensifying regulatory crackdown by China on some of its biggest and best-known companies, including Tencent (OTC: TCEHY), Alibaba (NYSE: BABA), Baidu (Nasdaq: BIDU) and DiDi Global (NYSE: DIDI), among many others in multiple Chinese industries. The crackdown drove the Hang Seng Index of China-related stocks down about 8.2% for the first two trading days of this week. After Tuesday's closing bell, however, several U.S. mega-tech companies did all they could to lift the market's spirits. Microsoft (Nasdaq: MSFT), Apple (Nasdaq: AAPL) and Google parent company Alphabet (Nasdaq: GOOGL) posted jaw-dropping earnings for the second quarter. The three tech giants made a collective $57 billion profit last quarter, driven by increased sales and advertising during the pandemic. And if that's not enough, an unexpected profit from Boeing (NYSE: BA) surprised investors, who proceeded to bid up the airplane manufacturer's stock by 5.75% in Wednesday trading. I've written many times about how there will be an eventual rotation out of COVID-19 stocks, like Microsoft and Alphabet. And we've seen that happen to an extent. But those mammoth tech companies appear to have legs in this recovery, and they're among the S&P 500 Index's best performers this year, with Alphabet up about 57% and Microsoft up around 30% (for comparison, the S&P 500 is up about 18% year to date) as of this writing. Time to Look Eastward Still, Chinese companies are increasingly important to investors worldwide, so there are ongoing concerns about a new and tighter regulatory regime out of Beijing. For this, I consulted one of our Club gurus, Chief Trends Strategist Matthew Carr, about whether investing in (or staying in) these stocks is a good idea. "I'm a huge fan of Chinese companies," Matthew told me. "I've recommended them for years and have had a number of big wins (as well as some losses), including this year." Matthew is looking through the current situation in China, which could well be just a regulatory realignment. And he sees great opportunities going forward. "The economies of scale in China and Southeast Asia, I believe, are a must for every investor's portfolio," he told me. "There are growth stories there you can't find anywhere else." Matthew says there are more than half a dozen great Chinese growth stories he's excited to buy at these levels. So I, for one, will be watching his free e-letter, Profit Trends, very closely for more on the opportunities in China. You should too. And if you're interested in more from Matthew, look no further than his Strategic Trends Investor newsletter. In it, Matthew looks at all the latest trends in the markets - and lets you know how you can take advantage of them to pad your wallet. Just click here to learn more. Enjoy your weekend, Matt | 
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