Perhaps you're growing weary of the China story by now.

Well, sit tight. Get used to it.

The story of China's impact on the global economy and its voracious appetite for commodities isn't going anywhere.

And China was the dominant theme at the McLean & Partners Wealth Management annual investment conference held recently at Calgary's Roundup Centre.

"We predict that the Chinese consumer will replace the U.S. consumer as the No. 1 driver of the global economy in the next 10 years," Brent McLean, president and CEO of McLean & Partners, told an audience of 600 at Outlook 2005.

McLean paused for effect and then, to underscore the message, he repeated that statement.

McLean is in the same camp as his investing role model Warren Buffett, believing the stock market will trade sideways in the next few years. He predicts the Dow Jones Industrial Average will be sitting exactly where it is today in 2010.

So what should an investor do?

Keep China on your watch list. At least, that's the word from McLean, whose Calgary firm manages about $700 million in assets for high-net individuals with portfolios greater than $1.5 million.

"I think this (Chinese) boom is just barely beginning," says McLean, who scouted China during a cycling vacation with his wife Sheila last November. "This is by far the biggest consumer boom we'll ever experience in our history."

McLean noted a mass exodus of Chinese from rural communities to cities that is expected to accelerate and the massive energy demand that would be fuelled by a boom in auto sales in China.

The Chinese economy has been growing at an annual clip of nine per cent and the country is already in the midst of an energy crisis.

However, McLean isn't recommending that investors pile into Chinese stocks, many of which have become overheated in the past couple of years.

McLean & Partners has decreased its exposure to China and is currently playing the China story indirectly by being overweighted in oil and gas stocks.

"The Chinese banking system," said McLean, "is like a big, leaky boat."

McLean & Partners predicts that oil prices will remain in the $40 to $50 US per-barrel range this year and perhaps even bust through $55.

"On the supply side (of oil and gas), we're drilling ourselves into a hole," Lex Kerkovius, McLean & Partners senior research analyst, told the audience. "The real point is that supply is a problem and will continue to be a problem. The U.S. will continue to consume more and more energy, and in China they're just beginning to eat the oil. The good times are going to roll (in the oil and gas sector) and China is going to give us the long-term growth."

Here are some other calls by McLean & Partners:

* Valuations in many income trusts have become overheated. "Selectivity (of income trusts) will become the watchword of the day," said Kerkovius.

* The U.S. dollar will likely drop substantially in 2006 and 2007, while the Canadian dollar could hit 89 cents versus the U.S. dollar in 2006 after trading in the 80 to -85 cent range this year. U.S. interest rates will also continue to rise, affecting the markets like a "five-thousand-pound gorilla," in the words of McLean & Partners vice- president Kevin Dehod.

* With the U.S. dollar expected to continue falling, investors should be cautious on U.S. stocks, particularly considering the risk on currency exchange. As a hedge against a potential U.S. dollar decline, McLean & Partners is recommending exposure to gold.

The company is also continuing to emphasize stocks that pay dividends.

"We own only four U.S. stocks today and we're thinking of taking profits on them," said Anil Tahiliani, McLean & Partners director of research. "We're increasing our weight in European stocks."

* Reports of the death of the U.S. consumer have been greatly exaggerated. "At some point, the U.S. consumer will have to spend less and save more," said Patti Shannon, a McLean & Partners adviser. "But we believe the U.S. consumer is alive and well in 2005."

* The market should be paying more attention to the drinking water market. Tahiliani said he plans to meet with a Boston water technology company that builds filtration systems.

* CHINESE POWER PLAY: China's rapidly growing interest in Canada's resources, including Alberta's oilsands, will have major repercussions on the global economy, writes Jim Willie, editor of the Hat Trick Letter.

"China has begun its bold attempt to execute an end run around the commodities market to secure their future supply and in effect, to lock out American customers. This is a brilliant pre-emptive attack, which U.S. leaders do not recognize yet.

"The captured booty will be mining and energy properties, which will elevate the tone of the commodities bull market and eventually trigger a bidding war on mining and energy stocks in the coming years. Political fallout is certain. Tensions will heighten.

"As for Canada's economy, expect a net positive benefit with substantive economic expansion mitigated by a rising loonie."

SAGE WORDS: "That's where the puck is. But where is the puck going?" - Brent McLean on staying ahead in the investment game

HOT STOCK: CALL-NET ENTERPRISES TSX:FON $4.77
Up $1.57 (49.1%) on 369,400 shares (based on week ending Feb. 4.)
For shareholders who piled into this telecom at $160 five years ago, you may feel like you've been put on hold for five years with a Lawrence Welk recording, but cheer up, gang. Thanks to a favourable ruling from the CRTC on service costs for smaller telecoms and rumours of a takeover, the market was buzzing again over this North York provider of Sprint Canada services with the shares flirting with a 52-week high.

COLD STOCK: Golden Star Resources TSX:GSC $3.84
Down 83 cents (-17.8%) on 5.4 million shares (based on week ending Feb. 4)
The gold bugs swear they're long gold and oblivious to the violent storms of the gold market. Gee, guys, wonder who's doing all the selling then? Golden Star, which led the bull charge in 2003 with a triple, is now among the biggest losers with gold losing its glitter. The Colorado-based gold producer is down almost 60 per cent since last April and the selling accelerated with its latest quarterly results showing a $600,000 profit (four cents per share).

(Gyle Konotopetz can be reached at gyle@businessedge.ca)