Well, that is exactly what we are seeing in some of the hottest markets in the world right now. Let me explain what I mean.
Just about everywhere you look at the moment, markets have taken a beating. So far we have seen $32 trillion in value wiped-off the global stock markets.
The good has been dumped along with the bad and the ugly. And there is no guarantee that the sell-off is over. So the big question is whether this is the right time to buy.
The answer is yes. And I’ll tell you exactly why.
The one investment strategy that you should focus on
This is the time to focus on longer term value investments. Because if you have a bit of spare cash to hand and a bit of patience, the opportunities right now are absolutely incredible.
You see, as a serious investor you need to be concerned with just two prices. The price at which you buy and the price at which you sell. All the rest is just background noise.
The key to profiting from the market panic is to identify investments with strong growth potential and healthy cash reserves to get them through these rough times. There are quite a few of them that are now trading well below their real value. Getting in now and holding on for the recovery could set you up for a massive profit play.
And right now, some of the hottest investment opportunities are in Asia…
Why Asia offers the best bets
Let’s go back a decade, to 1998. Asia is at the height of a massive financial crisis. To understand how bad things were you actually have to have been there.
Currencies plunged, banks were brought to their knees, property values tanked, riots broke out in the streets, governments collapsed…
We aren’t seeing anything like that in Asia right now. These economies are still growing rapidly. But their share markets have been caught-up in the global rout.
But just look at how the emerging Asian markets performed during the Asian financial crisis…
The regional benchmark share index, the MSCI AC Asia ex Japan fell to a low on September 1st 1998. That was almost a year after the crisis began. But by February 2000, the index had surged by 155%! And that was after Asia’s worst economic crisis since WWII.
I believe that we are set to see that happen again. Because the emerging markets have now become the engines of the global economy. China overtook the US is the biggest contributor to global economic growth last year.
Over the medium to long term, these are the markets that are going to outperform. And that’s where you are going to want to have your money.
We saw a very clear example of the future at the G20 summit in Washington last week. For the first time, the big emerging economies were given a real seat at the global economic table. That wasn’t an act of charity by the western powers. It was acknowledgement of how quickly global economic power is shifting Eastwards.
So if you are willing to take a slightly longer-term view of your investments, the sell-off in Asia has opened-up some of the best investment opportunities you are ever going find in your lifetime.
The one market you can’t afford to ignore
Now China is the biggest of the emerging powers. And it hogs the limelight. But as an investor, you have actually got better opportunities in some of the other emerging markets. And the one that really stands out is right there on China’s doorstep – Vietnam.
Land in Vietnam is cheaper than in China. Labour costs about half as much. International investors are waking-up to its huge potential. In fact, on a per-capita basis, Vietnam now trounces China on the amount of foreign investment it receives.
You can bet it won’t be long before “Made in Vietnam” becomes as common as “Made in China” is today. This country is fantastic long-term investment.
And best of all, the current financial crisis has opened up a way for us to buy into this market for just pennies on the pound…
There isn’t enough space to go into all the details here. But I have written a short report that tells you exactly what you need to do to get into this investment opportunity. And it also gives you all the details on another brilliant little profit opportunity that I have uncovered on my Profit Hunter investment service. You can take a look at that by clicking here.
Until next time
Manraaj Singh
Fleet Street Daily
How Frank could have doubled his money…and had a heart attack! BY BEN TRAYNOR
Got a fun email (with a chart!) from my colleague Frank Hemsley yesterday evening:
“The super-duper (and not at all volatile) anti-bank play has beaten my ‘double your money’ target… $120 to $250 in three months! I should have bought the damn thing!”
Just after the Lehman Brothers collapse, Frank reminded me of an investment we’d mentioned in FSD over the summer, the UltraShort Financials ProShares.
Bloomberg describes this investment as follows:
“UltraShort Financials ProShares is an exchange-traded fund incorporated in the USA. The Fund seeks daily investment results that correspond to twice (200%) the inverse (opposite) of the daily performance of the Dow Jones US Financials Index.”
Frank may be sitting on a double his money paper profit. But had he been playing for real, he’d have needed an iron constitution to get there:
The Daily Reckoning – It’s the End of the World!
BY BILL BONNER
What a week! It’s Friday...thank God.
We walked along the Seine last night, on the left bank, making our way to a romantic restaurant rendezvous. It was a lovely night. Paris is the world’s most beautiful city...and along the river, near the Pont Neuf and Notre Dame, we watched the lights on the water...and the outlines of the buildings on the Isle de la Cite...and the Rive Droite. A gentle mist fell on the scene like an impressionist’s brush.
You can read the Daily Reckoning in full here
P.S. If you enjoyed this article you can find out more about our free email, The Right Side by clicking here.
