Hedge fund managers are piling money into Asian markets.
It proves something we at Profit Hunter have believed for months...
Asia has bottomed out!
We now believe Asia’s markets are poised for a rebound and this could be your last chance in the foreseeable future to get in on the ground floor.
Right now I’m scoping two stocks that could be about to cut the mustard!
They’re not buys yet... but one of them could be any day now.
The best move you can make
We’ve been sitting tight on our positions since the beginning of the year instead of charging back in at the first sign of an apparent rebound.
It was the right move.
Most of them proved to be dead cat bounces, and the irrational optimists who got in too early have gotten burnt.
The average Asian hedge fund has seen a loss of 5.6% since the beginning of the year... and that’s with the advantage of every possible trading strategy available to them!
The sharp falls we saw in most Asian markets went beyond what can be economically justified. A lot of it was driven by hedge funds being forced to liquidate portions of their portfolio. Investors panicked and began withdrawing money from the funds... banks and brokerages hit by the credit crisis refused to lend to them.
So hedge funds were forced to sell shares to meet margin calls or to reduce their exposure.
In fact, the amount of money invested in Asia-focussed hedge funds fell by 10% in the first three months of this year...
But the investment case for Asia remains intact.
What I’m waiting for is a change in sentiment and the evidence for that is growing. And it’s growing fast!
You see, what worked on the downside should work on the upside too. The re-entry of the hedge funds could give the region a boost.
Here’s one move you can make before they do!
So, if you’re willing to ride-out the short-term turbulence, this is a good time to get into Asia.
Vietnam remains my favourite market in Asia — in fact my favourite way to play this phenomenal trend is listed right here in the UK. You can access all the details here.
But right now, markets everywhere are having a rough time. Asia and Europe have been falling for the last three days. They’re jittery over the surging price of oil. It hit a new record of $135 this morning. We can almost see OPEC President Chakib Khelil, smiling smugly... he’s predicting $200 oil.
Auto makers and transport companies have been having the worst of it. The airlines are ripping their hair out.
In Asia, we’ve seen the price of jet fuel shoot up by more than 50% since the beginning of the year!
Why we like the higher oil price
Shipping companies have taken a hit as well.
Investors are worried that higher fuel prices may dent profits.
We aren’t complaining though. We’re bullish on Asian shipping companies because the credit crunch has led to a slowdown in the number of new ships being built.
That’s obviously good news for the existing shipping companies and we’ve been running the rule over several of them.
But top shipping companies saw their share prices jump after that report on falling ship orders hit the mainstream financial press. So, we’re excited that the latest jitters over the oil price could bring their share prices back down to levels that we find exciting.
We’ve now whittled that down to two fantastic companies.
But we would like to see further falls in their share prices so that the potential impact of rising fuel costs is fully priced in. They’re both fantastic companies, but only one is going to make the cut.
In the meantime, check out our Vietnam opportunity right here and be ready when I give the signal to buy one of these incredible shipping stocks.
Regards,
Manraaj Singh
Editor Profit Hunter
