The Trump Administration will likely create a tremendous opportunity for investors in several emerging markets. “What?” I can hear some of you saying, “Didn’t this guy just write an article trashing emerging markets and warning investors to stay far away?”  Yes, that is the truth. I am expecting the primary emerging markets like China, Thailand, Brazil, and South Korea to struggle under pending economic changes in the United States.  However, there are two emerging markets that I think will thrive despite the potential for radical domestic policy change.  Finding The Good Side Of An International Slowdown An interesting truth… Read More

The Trump Administration will likely create a tremendous opportunity for investors in several emerging markets. “What?” I can hear some of you saying, “Didn’t this guy just write an article trashing emerging markets and warning investors to stay far away?”  Yes, that is the truth. I am expecting the primary emerging markets like China, Thailand, Brazil, and South Korea to struggle under pending economic changes in the United States.  However, there are two emerging markets that I think will thrive despite the potential for radical domestic policy change.  Finding The Good Side Of An International Slowdown An interesting truth about the stock market is that every negative has a corresponding positive. Even in the direst bearish markets and individual company situations, someone is earning profits from the turmoil. Another similar market fact is that there is an exception to every rule. No matter how many examples can be shown that a certain market or stock behavior occurs after XYZ happens, there are other examples where it does not happen. #-ad_banner-#The same thing happens whenever a blanket statement is made about the markets. Although my past article issued a warning about emerging markets, not every emerging market will suffer the… Read More

The economic cycles have turned negative on this attractive investment sector. Despite this sector having at one time been up by more than 16% this year, the signals are flashing that it is time to take profits. In fact, the primary ETF in the sector recently suffered its worst day of capital outflows since 2011. While at the same time, the bond-based ETF of this sector experienced $300 million in outflows, the most ever on record. #-ad_banner-#A Bloomberg analyst stated that we could see $20 billion of outflows from this sector by November 18th.  Apparently, big money has announced its… Read More

The economic cycles have turned negative on this attractive investment sector. Despite this sector having at one time been up by more than 16% this year, the signals are flashing that it is time to take profits. In fact, the primary ETF in the sector recently suffered its worst day of capital outflows since 2011. While at the same time, the bond-based ETF of this sector experienced $300 million in outflows, the most ever on record. #-ad_banner-#A Bloomberg analyst stated that we could see $20 billion of outflows from this sector by November 18th.  Apparently, big money has announced its intentions.  Despite the bearish signals, the mainstream financial press is alive with articles attempting to prop up the sector. The question is, will you continue plowing money into the “hot” sector of 2016, or heed the warning signs?  First, let’s take a quick look at the nature of financial cycles. Most every investor knows that the market often acts in cycles. However, investors often ignore the fact that hot stocks — or even sectors — will not stay hot forever.  Take the Internet bubble, for example. It was very clear that shares of untested, and often revenue-less, companies could not… Read More

As a former economist, I’ve always loved following the macro themes when looking for breakaway good buys in the stock market. Find the big picture forces like rates, currency impact and trade that are moving markets and you’ve got a huge head start on where an investment is going. Over the last several years, it’s these economic forces that have been leading the markets.  #-ad_banner-#Consumer staples and shares of utility companies have easily beaten the S&P 500 over the last year, jumping 12.6% and 17.2% as the Fed held off on raising rates. The flip side has been the weakness… Read More

As a former economist, I’ve always loved following the macro themes when looking for breakaway good buys in the stock market. Find the big picture forces like rates, currency impact and trade that are moving markets and you’ve got a huge head start on where an investment is going. Over the last several years, it’s these economic forces that have been leading the markets.  #-ad_banner-#Consumer staples and shares of utility companies have easily beaten the S&P 500 over the last year, jumping 12.6% and 17.2% as the Fed held off on raising rates. The flip side has been the weakness in financials as the net interest spread tightened, making it difficult for banks to make any money. As we come in to what could be the later innings of the business cycle, it won’t take much to tip the markets back into freefall.  The World Bank expects the global economy to grow just 2.4% this year, the same rate of growth booked last year, and next year is only expected to improve to 2.8% growth. Developed markets are expected to inch along at just 1.9% growth next year, less than half the 4.9% growth expected in emerging markets. On miserably… Read More

Emerging markets were a brutal place to invest in 2014 and 2015. #-ad_banner-#While the S&P 500 gained more than 12% in that time, iShares Emerging Markets (NYSE: EEM) fell into a bear market, declining 20%. That weakness was driven by a perfect storm of a strong dollar, falling commodity prices and slower than expected growth in China. Today, emerging markets are showing signs of a long-term reversal. And it is creating a great opportunity for investors who are frustrated with record low yields and dividends in the United States. In 2016, emerging markets have been among the best performing stock… Read More

Emerging markets were a brutal place to invest in 2014 and 2015. #-ad_banner-#While the S&P 500 gained more than 12% in that time, iShares Emerging Markets (NYSE: EEM) fell into a bear market, declining 20%. That weakness was driven by a perfect storm of a strong dollar, falling commodity prices and slower than expected growth in China. Today, emerging markets are showing signs of a long-term reversal. And it is creating a great opportunity for investors who are frustrated with record low yields and dividends in the United States. In 2016, emerging markets have been among the best performing stock markets in the world. In the first eight months of the year, the iShares Emerging Markets is up more than 14%, almost tripling the return of the S&P 500. Take a look at the outperformance below. Despite that impressive rebound, I see two reasons why it’s still a great time to invest in emerging markets — particularly investors looking to pad their dividends. Emerging Markets Are Undervalued After posting big gains over the last two years, the S&P 500 is overvalued compared to historical averages. Its current P/E ratio of 25 times is up from 21… Read More

Normally when investors think of stocks trading on the over-the-counter exchange, it’s only after reading the headline on some penny stock scam. Most OTC-traded companies are thinly-traded and offer very limited financial information available to shareholders. For this reason, most OTC stocks are not normally covered by analysts, and are usually completely ignored by regular investors. That can mean outsized gains for investors that are willing to dig deeper into financials to uncover the companies that are more than just a postal address for a pump-and-dump scheme. Screening through OTC stocks recently, I found one company that could be the… Read More

Normally when investors think of stocks trading on the over-the-counter exchange, it’s only after reading the headline on some penny stock scam. Most OTC-traded companies are thinly-traded and offer very limited financial information available to shareholders. For this reason, most OTC stocks are not normally covered by analysts, and are usually completely ignored by regular investors. That can mean outsized gains for investors that are willing to dig deeper into financials to uncover the companies that are more than just a postal address for a pump-and-dump scheme. Screening through OTC stocks recently, I found one company that could be the furthest from what you would normally expect on the market. It’s building a consumer internet empire, and is already the largest company in Asia. In fact, it’s bigger than Facebook (Nasdaq: FB). #-ad_banner-# Building A Consumer Internet Empire China internet usage jumped to 668 million users last year, posting growth of 5.7% from the prior year, but still only bringing the percentage of connected users to 49% of the population. Considering  that internet usage by people between the ages of 10 and 40 is above 75%, the country could see outsized growth for decades as the entire population comes online. Read More

In a bit of a surprise move, our northerly neighbor, Canada, has joined the Asian Infrastructure Investment Bank (AIIB). The AIIB has garnered a bit of controversy, with naysayers arguing that the bank is just a way for China to gain more influence in the world. The United States has not signed on to the bank… But it’s only one of two G8 members to not do so, now that Canada has thrown its hat into the ring. #-ad_banner-#Germany, France, Italy, the United Kingdom and Russia have already signed on to the bank. In fact, Canada’s membership will bring the… Read More

In a bit of a surprise move, our northerly neighbor, Canada, has joined the Asian Infrastructure Investment Bank (AIIB). The AIIB has garnered a bit of controversy, with naysayers arguing that the bank is just a way for China to gain more influence in the world. The United States has not signed on to the bank… But it’s only one of two G8 members to not do so, now that Canada has thrown its hat into the ring. #-ad_banner-#Germany, France, Italy, the United Kingdom and Russia have already signed on to the bank. In fact, Canada’s membership will bring the total number of members to 58. As the name suggests, the AIIB will invest in infrastructure in Asia. And in late June the bank announced $509 million in loans for four projects (via New York Times): •    Spread electric power in rural Bangladesh, •    Improve living conditions in slums in Indonesia, •    Repair and build roads in Pakistan, and •    Improve roads in Tajikistan. The bank is partnering with other institutions like the World Bank in order to fast-track some of these projects. What’s interesting is that the AIIB is focused on projects that will lead to… Read More

My wife and I are planning to visit Europe soon. Deciding exactly where to go is proving difficult: historic German castles and biergartens, quaint Irish country inns, moonlit Italian dining… There are just too many things to see.  Regardless of whether we fly to Munich, Dublin or somewhere else, our budget will stretch much further these days thanks to the strong dollar.  Two years ago, the dollar was equivalent to 0.70 euros. Today, the same greenback will get you 0.90 euros. So if you set aside $1,000 in spending money back then and went to a bank to exchange it,… Read More

My wife and I are planning to visit Europe soon. Deciding exactly where to go is proving difficult: historic German castles and biergartens, quaint Irish country inns, moonlit Italian dining… There are just too many things to see.  Regardless of whether we fly to Munich, Dublin or somewhere else, our budget will stretch much further these days thanks to the strong dollar.  Two years ago, the dollar was equivalent to 0.70 euros. Today, the same greenback will get you 0.90 euros. So if you set aside $1,000 in spending money back then and went to a bank to exchange it, you would have walked out with 700 euros to spend. Today, the same outlay will put 900 euros in your pocket.  ​ This favorable exchange means my wife and I can enjoy better meals, stay in nicer hotels, and visit more attractions — all without spending a single extra dollar. You can see why travelers love this strong dollar. Unfortunately, large businesses hate it. U.S.-made goods exported overseas have become more expensive for foreign buyers. Compounding matters, any sales based in euros, yen or rupees are being converted back into fewer dollars — causing revenue and profit to shrink… Read More

Emerging markets have had a tough few years. Slowing growth in China after the global financial crisis has meant reduced commodity demand and weaker investor sentiment for the group. Then the plunge in crude prices led to lower income for oil-producing nations, along with weakening currencies and falling foreign direct investment.  But 2016 looked to be the year the group could turn a corner. The price of oil and of some metals has rebounded, and dollar strength has plateaued. The iShares MSCI Emerging Markets (NYSE: EEM) was up 26% in mid-July from its January low.  #-ad_banner-#One particular emerging market looked… Read More

Emerging markets have had a tough few years. Slowing growth in China after the global financial crisis has meant reduced commodity demand and weaker investor sentiment for the group. Then the plunge in crude prices led to lower income for oil-producing nations, along with weakening currencies and falling foreign direct investment.  But 2016 looked to be the year the group could turn a corner. The price of oil and of some metals has rebounded, and dollar strength has plateaued. The iShares MSCI Emerging Markets (NYSE: EEM) was up 26% in mid-July from its January low.  #-ad_banner-#One particular emerging market looked to be a standout among the group, with shares of its country fund up 37% from the January low just to the end of April. The country’s current account deficit, the difference between exports and imports, shrank to a five-year low in 2015 and foreign investors were pouring money into the economy. That is, until political uncertainty started gripping the country in late April and erupted in a failed coup this month.  Shares of the country fund are now down 22% from their 52-week high and may be the best buy in emerging markets this year. Historical evidence shows that… Read More

I recently announced a major shift in my premium newsletter, High-Yield Investing. To put it simply, I’m going global. Now, a decent number of the current holdings in my premium newsletter, High-Yield Investing, are based abroad. But we simply haven’t made looking for foreign yielders a major focus. We’re going to change that. #-ad_banner-#Most investors automatically assume that U.S. dividend payers are the best. Not so fast. As I’ll explain in a moment, by only looking at American companies for income, you’re severely limiting your choices. By changing the directive of my newsletter from primarily U.S.-focused to a global focus… Read More

I recently announced a major shift in my premium newsletter, High-Yield Investing. To put it simply, I’m going global. Now, a decent number of the current holdings in my premium newsletter, High-Yield Investing, are based abroad. But we simply haven’t made looking for foreign yielders a major focus. We’re going to change that. #-ad_banner-#Most investors automatically assume that U.S. dividend payers are the best. Not so fast. As I’ll explain in a moment, by only looking at American companies for income, you’re severely limiting your choices. By changing the directive of my newsletter from primarily U.S.-focused to a global focus means I now have the freedom to leave no stone unturned in the search for income. That means my subscribers can now rely on one source to build a well-rounded portfolio and truly earn the highest dividends the world has to offer.  The Case For International Income For a variety of reasons, the average publicly traded large-cap U.S. firm carries a lower dividend yield than those in many other countries. That doesn’t mean you can’t find plenty of excellent high-yield opportunities on American soil; some of the world’s best high-income stocks are U.S.-based. But to truly maximize the income-generating… Read More

The Brexit dominated headlines at the beginning of last week. By week’s end, investors had shrugged it off. And while risks remain for Europe’s economy in the aftermath, there’s another part of the globe that could be much more problematic for the markets. I’m talking about China. Policymakers in China have been playing a game of smoke and mirrors for years. They’re hoping Chinese citizens — and global investors — aren’t paying attention to what they’re really up to. But my colleague Jared Levy has had his eye on China for a while. Jared and his… Read More

The Brexit dominated headlines at the beginning of last week. By week’s end, investors had shrugged it off. And while risks remain for Europe’s economy in the aftermath, there’s another part of the globe that could be much more problematic for the markets. I’m talking about China. Policymakers in China have been playing a game of smoke and mirrors for years. They’re hoping Chinese citizens — and global investors — aren’t paying attention to what they’re really up to. But my colleague Jared Levy has had his eye on China for a while. Jared and his Profit Amplifier readers have made money from bearish China-related trades several times over the past year. Take a look for yourself…      The reasons to be worried about China are numerous — so much so that we don’t have the space to cover all of them in today’s essay. But let’s take a quick look at some highlights… #-ad_banner-#The Smart Money Is Betting Against China Experts are saying China is “overheated” and “full of bubbles.” In fact, Jared… Read More