Emerging Market Stocks
Equities in emerging markets always present intelligent investors with more opportunities. Not only because shares in emerging markets have more upside/downside potential than developed markets, investors may also receive a "double whammy" through the appreciation/depreciation of the currencies of local markets.
Today, we face a world with turbulence and internationalization. Having a global perspective, identifying long term trends, and reacting quickly to catalysts that initiate a long term trend will result in being able to profit from today's financial world.
We have researched, investigated, and studied long term global economic trends. These resulted in the following conclusions:
1. US dollar will continue to depreciate over long term
2. Commodity prices (i.e. industrial metals, energy, agricultural products, fertilizers) will rise in the next one or two decades due to increased demand from China
3. China's productivity and Gross Domestic Product shall continue at present rate of growth, though interruptions might occur, which is common on the path of a rise of a superpower.
4. China's growth will result in greater number of people learning Chinese (which is not a difficult language to learn) as well as greater number of Chinese people traveling abroad and non-Chinese people traveling to China.
Intelligent investors will focus on emerging markets in which the host country is politically stable, economically open, with monetary policies that will result in the rise of its equity markets. In particular, intelligent investors should focus on the countries that will benefit from global long term economic trends.
We will focus on the following countries, with explanations
Norway: a natural resource based economy with large oil reserves, minerals, other raw materials. The central bank has repeatedly decreased interest rates to curb the appreciation of its currency.
Malaysia: a natural resource based economy with large production of palm oils, products from plantations which will largely be supplied to China to meet its demand. Its central bank also lowered their interest rates. Please read more for Malaysia Stocks
Chile: a natural resource based economy in which 50% of their exports are copper. (Prices of copper will go up). Chile has the freest economy in South America, and it has signed free trade agreements with the United States, Europe, and other countries.
Hong Kong: many potential growth companies in China choose to be listed in Hong Kong instead of Mainland China because of mainland government's preferential listing policies. Therefore, in stock exchanges of Hong Kong, intelligent investors may find hidden jewels of Chinese companies. Please read more for Hong Kong Stocks.
Canada: if the Canadian central bank keep lowering its interests rates, Canadian stocks can be explored in this largely natural resource based economy. Remember, Canada has the largest Zinc and Lead companies in the world. Please read more for Canadian Stocks.
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