Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21
Gold Price Big Picture Trend Forecast 2021 - 13th Jan 21
Are Covid Lockdowns Bullish or Bearish for Stocks? FTSE 100 in Focus - 13th Jan 21
CONgress "Insurrection" Is Just the Latest False Flag Event from the Globalists - 13th Jan 21
Reflation Trade Heating Up - 13th Jan 21
The Most Important Oil Find Of The Next Decade Could Be Here - 13th Jan 21
Work From Home £10,000 Office Tour – Workspace + Desk Setup 2021 Top Tips - 12th Jan 21
Collect a Bitcoin Dividend Without Owning the King of Cryptos - 12th Jan 21
The BAN Hotlist trade setups show incredible success at the start of 2021, learn how you can too! - 12th Jan 21
Stocks, Bitcoin, Gold – How Much Are They Worth? - 12th Jan 21
SPX Short-term Top Imminent - 12th Jan 21
Is This The Most Exciting Oil Play Of 2021? - 12th Jan 21
Why 2021 Will Be the Year Self-Driving Cars Go Mainstream - 11th Jan 21
Gold Began 2021 With a Bang, Only to Plunge - 11th Jan 21
How to Test Your GPU Temperatures - Running Too Hot - GTX 1650 - Overclockers UK - 11th Jan 21
Life Lesson - The Early Bird Catches the Worm - 11th Jan 21
Precious Metals rally early in 2021 - 11th Jan 21
The Most Exciting Oil Stock For 2021 - 11th Jan 21
Financial Market Forecasts 2021: Navigation in Uncharted Waters - 10th Jan 21
An Urgent Message to All Conservatives, Right-Wingers and Patriots - 10th Jan 21
Despite Signs to the Contrary, Gold Price at or Near Top - 10th Jan 21 -
Ultimate Guide On The 6 Basic Types Of Index Funds - 10th Jan 21
Getting Vaccinated at TESCO - Covid-19 Vaccinations at UK Supermarket Pharmacies and Chemists - 10th Jan 21
Cheers for the 2021 Stock Market and These "Great Expectations" - 9th Jan 21
How to Plan Your Child With Better Education - 9th Jan 21
How To Find The Best Casino - 9th Jan 21
Gold Is Still a Bargain Buy - 8th Jan 20
Gold Price Set to Soar as Hyperinflation Looms - 8th Jan 21
Have Big Dreams? Here's How to Pay for Them - 8th Jan 21
Will the Fed Support Gold Prices in 2021? - 8th Jan 21
Stocks trading strategies for beginners - 8th Jan 21
Who is Buying and Selling Stocks in 2021 - 8th Jan 21
Clap for NHS Heroes 2021 as Incompetent Government Loses Control of Virus Again! - 8th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Emerging Markets Beating the Dow Six to One!

Stock-Markets / Emerging Markets Dec 28, 2009 - 11:32 AM GMT

By: Martin_D_Weiss

Stock-Markets

Best Financial Markets Analysis ArticleMartin here with a brief review of global markets for 2009 and some basic thoughts regarding the risks and opportunities in 2010.

As we have been writing for many years, and as we highlighted in our Weiss Global Forum this past summer (click here for transcript), key emerging markets are — and should continue to be — greatly outperforming the Dow across the board.


Starting at the close of trading in 2008 and excluding the last few days of trading this year which are still to come …

  • If you had invested $10,000 in the average Dow stocks, you’d now have a gain of $1,640 for the year. Meanwhile …
  • If you had invested that same $10,000 in FXI, a leading ETF which tracks China’s blue chips, you would have made more than twice as much, with a gain of $3,613, and …
  • With the ETF tracking Brazil’s leading stocks (EWZ), you could have put all of the above to shame — achieving a gain of $10,117, or over SIX times more than the Dow.

I hasten to add that no investment is risk free, and emerging market stocks can be especially volatile — the reason we have always approached them with caution.

But the fundamentals have clearly supported — and continue to support — this huge outperformance:

In the U.S., despite the biggest fiscal and monetary stimulus in our lifetime, the economic recovery remains one of the weakest in the world.

It’s bogged down in a morass of defaulting mortgages and bad credit cards.

It’s more dependent than ever on stimulus from a government that is already running the biggest budget deficits of all time.

And, as I detailed last week in “Three Government Reports Reveal New Looming Risk,” even this disappointing performance could be threatened by an interest-rate rise in 2010 for which few are prepared.

Chinahas just become the world’s second-largest economy, leaping ahead of Japan, which had held this distinction for nearly half a century.

For 2008, the Chinese government has just revised its official GDP growth figure from the already-high 9 percent estimated previously to a 9.6 percent. And for 2009, the government says the economy grew 8 percent — a number that’s also likely to be upwardly revised next year.

That will put China’s GDP at close to $4.75 trillion, compared to $4.6 trillion in Japan. And if you adjust these figures for the far higher cost of living in Japan, China’s economy is $3.5 trillion larger than Japan’s.

India is not far behind: Since 2003, it has chalked up an impressive growth, averaging 8.5 percent annually. This year, despite the global crisis, its growth is likely to come in at over 7 percent. And right now, it’s already gaining momentum for an expected 8 percent expansion in 2010.

Brazil, in my view, is the strongest BRIC country.

Brazil’s banking system boasts not only better stability than that of the other BRIC nations, but also of the U.S. and Western Europe. Its central bank is one of the few in the world that has strictly applied the higher capital standards recommended by the Bank of International Settlements — not only for high reserve requirements, but also for reduced risk taking.

Brazil has enjoyed a democratic multi-party system for 25 years, with two strong parties taking turns governing the country, and, remarkably, with the world’s most advanced computerized election system.

Most important, Brazil’s recent growth has been largely fueled by a dramatic expansion of the middle class and a reduction in the poverty rate. Tens of millions of citizens who were outside the economy — without a penny of savings or even a formal address — now have steady income, bank accounts, credit, cell phones, and most important, the ability to consume.

These are not structures or trends that change overnight. They promote sustainable growth. And they should give global investors the opportunity to again greatly outperform those who are confined to the U.S. markets.

Stand by for further instructions!

Good luck and God bless,

Martin

This investment news is brought to you by Money and Markets . Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com


© 2005-2019 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