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Asian Markets Look Set For A Rebound : Here’s How You Could Profit From It

Date 17/07/2008
Profit Hunter | By Manraaj Singh

Asian markets look set for a rebound: here’s how you could profit from it.
China became the world’s worst performing stock market yesterday. That’s actually quite incredible when you remember that this is the fastest-growing major economy in the world.

The CSI 300 Index has fallen by 49% since the start of this year. But China’s economy is still growing at over 10% per year. And corporate profits are still rising.

We’ve seen that happen right across Asia this year: Sharp falls in the region’s share markets while economies continue to boom.
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We could still see more turmoil ahead in Asia’s markets. But right now, there are a lot of companies across the region that offer good value.

In fact, China isn’t even the most exciting Asian market. In a moment, I’ll show you the one Asian market that I believe is going to outperform all the others in the coming months.

And I’ll show you the single best way to invest in this opportunity.

Asia’s falling markets have opened-up some incredible opportunities

It’s been a painful year for Asian investors so far. Every major market has seen a double-digit fall since the beginning of the year.

There could still be more turmoil ahead. But the declines that we’ve seen have already opened-up a lot of bargain investment opportunities.

Yesterday, I told you about how the turmoil in India’s share markets could drive fast-growing companies from subcontinent to look for listings on the AIM. And that could open up a whole new range of opportunities to get in on that growth story.

But we are also looking at opportunities listed in Asia once again. We sold the last remaining Asian-listed play in the Profit Hunter portfolio, Egana Goldpfeil, last August. And we didn’t do too badly on it either - a 112% gain.
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We’ve stayed out of the Asian markets ever since because the risk of a sell-off in the region’s markets was too high. In a bear market good shares get dragged down with the bad.

But I believe we are now close to a bottom in the region’s markets. And it looks like time to get back in. We have probably already seen the worst of the regional sell-offs. That makes it easier to judge an investment opportunity on its own merits rather than having to worry about market sentiment.

Right now, we’re watching one Indonesian company very closely here at Profit Hunter. Its share price is up by 152% over the last 12 months and I believe that it still has huge growth potential.

Why you ought to be in this market But it got a little bit ahead of itself and its share price is now down by 27% from its June 10th peak. We’re going to be patient on this. It is now trading at a P/E of 15.6 –a premium to its peers. And I believe that we’ll be able to get in at a much better price by holding on a while longer.

The one Asian market to which we have remained fully exposed in our portfolio is Vietnam. Profit Hunter has made investments in some very unusual locations around the world, but I still haven’t found a better long-term growth story than this one.

Vietnam’s market was the worst performer globally this year until the middle of June. But it’s come roaring back since then. In fact, its stock market is up by 34% since June 20th. And I expect that rebound to continue. Vietnam looks set to outperform the rest of Asia in the coming months.

Vietnam may sound exotic, but buying into its comeback couldn’t be easier. Let me show you a simple way to buy into Asia’s most exciting growth story…while keeping your money right here in London.

Regards,

Manraaj Singh
Editor
Profit Hunter

Please note: Past performance is not a reliable indicators of future results.
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