Best of the Week
Most Popular
1. Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - Nadeem_Walayat
2.Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - James Burgess
3.Gold Price Trend Analysis - - Nadeem_Walayatt
4.The Beginning of the End of the Dollar - Richard_Mills
5.Stock Market Trend Forecast Update - - Nadeem_Walayat
6.Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - Troy_Bombardia
7.Precious Metals Sector: It’s 2013 All Over Again - P_Radomski_CFA
8.Central Banks Have Gone Rogue, Putting Us All at Risk - Ellen_Brown
9.Gold Stocks Forced Capitulation - Zeal_LLC
10.The Post Bubble Market Contraction Thesis Receives Validation - Plunger
Last 7 days
The Incredibly Bullish Set-Up for Gold - 20th Oct 18
Here Comes the Stock Market Retest - 20th Oct 18
Waterproof Camera - Olympus Tough TG-5 Setup and First Use - 20th Oct 18
Israel’s 50-Year Time Bomb, Pushing Palestinians to the Edge - 19th Oct 18
Bitcoin Trend Analysis 2018 - 19th Oct 18
History's Worst Stock Market Crash and the Greatest Investing Lesson! - 19th Oct 18
More Signs of a Stocks Bull Market Top and Start of a Bear Market in 2019 - 19th Oct 18
Stock Market Detailed Map Of Expected Price Movement Before The Breakout - 18th Oct 18
Determining the Outlook for Gold Mining Stock - 18th Oct 18
Investor Alert: Is the Trump Agenda in Peril? - 18th Oct 18
Stock Market is Making a Sharp Rally After a Sharp Drop. What’s Next? - 18th Oct 18
Global Warming (Assuming You Believe In It) Does Not Affect Gold - 18th Oct 18
Best Waterproof Compact Camera Olympus Tough TG-5 Review - Unboxing - 18th Oct 18
Silver's Time Is Coming - 17th Oct 18
Stock Market Volatility Breeds Contempt - 17th Oct 18
Gold 7-Year Bear Market Phase Is Over - 17th Oct 18
Gold - A Golden Escape - 17th Oct 18
Tec Stocks Sector Set For A Rebound? - 16th Oct 18
Real Estate Transactions are Becoming Seamless with Blockchain-Powered Data Sets - 16th Oct 18
Important Elements of a Viral Landing Page - 16th Oct 18
Stephen Leeb Predicts 3-Digit Silver and 5 Digit Gold?! - 16th Oct 18
BREXIT, Italy’s Deficit, The EU Summit And Fomcs Minutes In Focus - 16th Oct 18
Is this the Start of a Bear Market for Stocks? - 16th Oct 18
Chinese Economic Prospects Amid US Trade Wars - 16th Oct 18
2019’s Hottest Commodity Is About To Explode - 15th Oct 18
Keep A Proper Perspective About Stock Market Recent Move - 15th Oct 18
Is the Stocks Bull Dead? - 15th Oct 18
Stock Market Bottoms are a Process - 15th Oct 18

Market Oracle FREE Newsletter

Trading Any Market

Investing in Undervalued Country Just Starting Stocks Bull Markets

Stock-Markets / Emerging Markets Jun 23, 2014 - 12:57 PM GMT

By: Chris_Vermeulen

Stock-Markets

Research proves that undervalued equity markets achieve higher future returns over longer term investment horizons.

Studies show that investing in markets which have just been through a bear market and their valuations are low is one of the best ways to grow your investment capital.


In 2012 Ireland was one of the countries with lowest PE ratio and a couple years later and 100% rise in the EIRL (Ireland ETF), it is now the second most overvalued country.

Every year there are several markets that are bottoming and starting a new bull market. The key is finding them and being prepared to lock up some of your investment capital in these longer term investments.

On Wednesday I recorded my call with Kerry Lutz of the Financial Survivor Network. We talked about a couple new bull markets that were starting and the one which I like the most.

Listen To Call:Click Here

I believe the best way to be successful as an investor is to actively manage your portfolio. And when I  say actively manage it, I mean, you should be rotating your money out of underperforming stocks, sectors, commodities, and index positions and moving that money to fresh investments which more room to rise.

In a week or so I will be doing a detailed report on how many positions a portfolio of various sizes should be holding. You will be surprised with what this report is going to tell you.

In short, the less the trades you make and the fewer positions you hold in your portfolio can make a dramatic impact on your portfolio volatility, time commitment, stress levels and performance.

Diversification between a small selection of investments and strategies is vital. This is not rocket science, anyone can do it and I will show you how.

Anyway, let’s get back to undervalued markets…

You have to invest in markets and sectors that have just gone through a bear market. By doing so you can look forward to years of upside growth.

Cheapest Markets, and Most Expensive Markets

Automated Investing System

This table shows the valuations of world markets with the most recent data available.

Looking from an evaluation stand point and long term investing Russia, China and Greece are the most undervalued. And if we take an average PE ratio of the majority of counties of 20, then we can calculate a rough percent return each country should provide in the coming years.

Keep in mind, these markets can still be volatile and if you are a short term trader its best not to trade based off fundamentals and valuation. Hedge fund robots and my automated investing system do not and most US stock market participants do not either.

Charts of Undervalued Country ETF’s

These charts just show a simple snap shot and their first upside target before they run into some long term resistance.

Automatic Investing Strategy

Automated Investing Strategy

Algorithm Investing

Long Term County Specific Investing Conclusion:

In short, this report is simple and uses a logical strategy. Again, it is critical to have a diversified portfolio with completely unrelated investments (different countries) and also to use different investment strategies and time frames to balance portfolio volatility.

I believe you should have long term holdings and short term holding using both long and short positions. Short positions allow you to profit from a falling market, and some of the biggest and fastest money can be made with this strategy and is a vital strategy within my automated investing system.

Learn About My Investing Strategy Here: www.AlgoTrades.net

Join my email list FREE and get my next article which I will show you about a major opportunity in bonds and a rate spike – www.GoldAndOilGuy.com

Chris Vermeulen is Founder of the popular trading site TheGoldAndOilGuy.com.  There he shares his highly successful, low-risk trading method.  For 7 years Chris has been a leader in teaching others to skillfully trade in gold, oil, and silver in both bull and bear markets.  Subscribers to his service depend on Chris' uniquely consistent investment opportunities that carry exceptionally low risk and high return.

This article is intended solely for information purposes. The opinions are those of the author only. Please conduct further research and consult your financial advisor before making any investment/trading decision. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Chris Vermeulen Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules