Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Redefining Political Economy, Globalization & Business Models Consequent on Corona Virus Pandemics - 9th Apr 20
Plus500 Rreview - 9th Apr 20
Gold Price Closely Tracks Debt-to-GDP Ratio - 9th Apr 20
Gold, Silver and Rigged Market Socialism - 9th Apr 20
Going to School in Lockdown Britain, Dobcroft Sheffield - 9th Apr 20
Amazon Face Masks to Protect Against Covid-19 Viral Particles N95, FPP2, PM2.5, for Kids and Adults - 9th Apr 20
Is Natural Gas Price Ready For An April Rally? - 8th Apr 20
Market Predictions And The Business Implications - 8th Apr 20
When Will UK Coronavirus Crisis Imrpove - Infections and Deaths Trend Trajectory Analysis - 8th Apr 20
BBC Newsnight Focuses on Tory Leadership Whilst Boris Johnson Fights for his Life! - 8th Apr 20
The Big Short Guides us to What is Next for the Stock Market - 8th Apr 20
USD Index Sheds Light on the Upcoming Gold Move - 8th Apr 20
The Post CoronaVirus New Normal - 8th Apr 20
US Coronavirus Trend Trajectory Forecast Current State - 7th Apr 20
Boris Johnson Fighting for his Life In Intensive Care - UK Coronavirus Crisis - 7th Apr 20
Precious Metals Are About To Reset Like In 2008 – Gold Bugs, Buckle Up! - 7th Apr 20
Crude Oil's 2020 Crash: See What Helped (Some) Traders Pivot Just in Time - 7th Apr 20
Was the Fed Just Nationalized? - 7th Apr 20
Gold & Silver Mines Closed as Physical Silver Becomes “Most Undervalued Asset” - 7th Apr 20
US Coronavirus Blacktop Politics - 7th Apr 20
Coronavirus is America's "Pearl Harbour" Moment, There Will be a Reckoning With China - 6th Apr 20
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings - 6th Apr 20
The Stock Market Is Not a Magic Money Machine - 6th Apr 20
Gold Stocks Crash, V-Bounce! - 6th Apr 20
How Can Writing Business Essay Help You In Business Analytics Skills - 6th Apr 20
PAYPAL WARNING - Your Stimulus Funds Are at Risk of Being Frozen for 6 Months! - 5th Apr 20
Stocks Hanging By the Fingernails? - 5th Apr 20
US Federal Budget Deficits: To $30 Trillion and Beyond - 5th Apr 20
The Lucrative Profitability Of A Move To Negative Interest Rates - Pandemic Edition - 5th Apr 20
Visa Denials: How to avoid it and what to do if your Visa is denied? - 5th Apr 20 - Uday Tank
WARNING PAYPAL Making a Grab for US $1200 Stimulus Payments - 4th Apr 20
US COVID-19 Death Toll Higher Than China’s Now. Will Gold Rally? - 4th Apr 20
Concerned That Asia Could Blow A Hole In Future Economic Recovery - 4th Apr 20
Bracing for Europe’s Coronavirus Contractionand Debt Crisis - 4th Apr 20
Stocks: When Grass Looks Greener on the Other Side of the ... Pond - 3rd Apr 20
How the C-Factor Could Decimate 2020 Global Gold and Silver Production - 3rd Apr 20
US Between Scylla and Charybdis Covid-19 - 3rd Apr 20
Covid19 What's Your Risk of Death Analysis by Age, Gender, Comorbidities and BMI - 3rd Apr 20
US Coronavirus Infections & Deaths Trend Trajectory - How Bad Will it Get? - 2nd Apr 20
Silver Looks Bearish Short to Medium Term - 2nd Apr 20
Mickey Fulp: 'Never Let a Good Crisis Go to Waste' - 2nd Apr 20
Stock Market Selloff Structure Explained – Fibonacci On Deck - 2nd Apr 20
COVID-19 FINANCIAL LOCKDOWN: Can PAYPAL Be Trusted to Handle US $1200 Stimulus Payments? - 2nd Apr 20
Day in the Life of Coronavirus LOCKDOWN - Sheffield, UK - 2nd Apr 20
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20

Market Oracle FREE Newsletter


Singapore, Turkey, Thailand and Brazil Soaring Emerging Stock Markets

Stock-Markets / Emerging Markets Sep 28, 2010 - 05:26 AM GMT

By: Money_Morning


Best Financial Markets Analysis ArticleJon D. Markman writes: I'm focused like a laser beam on emerging markets this year, because there is much more at play than just relative strength. This is where the economic growth in the world is occurring.

I hope you are participating. And if you're not, don't worry - there's still time to get in and make a profit before the mainstream catches on.

Let's take a look at a few of my favorite plays right now, beginning with Singapore and Thailand - two economies I told investors to keep an eye on earlier this month.

Starting with Singapore
Singapore's its $182 billion economy rebounded from last year's global slump faster than other economies in the region, as it's up 15% this year.

Regional analysts anticipate it will expand at a record 14.9% pace this year, due to improving demand for the city-state's exports. That's up from an estimate of 9% published three months ago. Singapore's economy relies on trade, finance and tourism. Its central bank said the surge would be led by a 29% expansion of manufacturing.

The two new casino complexes that were opened earlier in the year also have given the economy a boost. They were built at a cost of $10 billion in an effort to expand Singapore's stature as a destination rather than just a waypoint for global travelers.

The M Hotel in Singapore's business district once struggled to fill its rooms on weekends as visiting executives tended to leave by Friday, according to The China Post. Now it enjoys 90%-plus occupancy rate.

"I'm looking out of my window at the new skyline. What has developed over the last five years has been amazing," Hanspeter Brummer, chief executive for Asia at Swiss private bank BSI, told the newspaper from his office, which overlooks the new Marina Bay financial district.

Australian companies like BHP Billiton Ltd. (NYSE ADR: BHP) and Macquarie Group Ltd. (PINK: MQBKY) lease space in the new Marina Bay office towers.

The new business district was built on reclaimed land around the mouth of the Singapore River, and comprises not just office skyscrapers but also shops, condos, theaters and the Marina Bay Sands casino, which was built by Las Vegas Sands Corp. (NYSE: LVS). The district sports the world's biggest Ferris wheel, restaurants that feature celebrity chefs, and the world's first Formula One circuit where races can run at night.

To show how far Singapore has come, the city-state this week will play host to a Formula One grand prix race, as well as performances by musical artists Mariah Carey, Missy Elliott, Adam Lambert and Daughtry.

Indeed, Singapore's growth has been so explosive the government, concerned about the potential for a property bubble, has upped minimum down payments on second mortgages.

''There is a danger of a property bubble forming, given the strong momentum of the market and a likely slowdown in the pace of economic growth as well as the economic uncertainties ahead,'' Mah Bow Tan, the island's national development minister, said last week in parliament.

Private residential prices have climbed for four straight quarters, reaching a new high in the second quarter of this year. Some 14,688 homes were sold last year, according to the Urban Redevelopment Authority. That's just shy of the record 14,811 transacted in 2007.

Still Singapore warrants a close eye, even if it means simply investing in the iShares MSCI Singapore Index Fund (NYSE: EWS).

The Talk About Thailand
Thailand is the base of another strong economy located around the South China Sea.

The Thai currency, the baht, earlier this month rose to its highest level since 1997 due to an improved outlook for economic growth and expectations of more investor inflows. A current-account surplus of $5.42 billion this year through July and the fact that the Bank of Thailand has raised its benchmark interest rate twice this year have also helped the baht post the second-best performance among Asia's most-traded currencies excluding the yen.

Thailand's Finance Ministry yesterday (Monday) raised its 2010 economic growth forecast for the third time in six months after exports surged in the first half of the year and local demand recovered. Gross domestic product (GDP) may expand 7.3% to 7.8% in 2010, with a mid-point forecast of 7.5%, said Satit Rungkasiri, head of the Thai ministry's Fiscal Policy Office.

Exports rose 48% year-over-year in the second quarter. The country's exports sector is highly reliant on Chinese and U.S. economies, but one interesting side note is that Thai-Malaysian trade could hit a record $20 billion this year, according to Bernama, Malaysia's national news agency.

Malaysia is the fifth-largest investor in Thailand after Japan, the United States, Singapore, and China. Most trade is industry-based but tourism is also big. Consider that 940,000 Malays visited Thailand this year while 700,000 Thais visited Malaysia.

Indeed, tourism is rebounding faster than expected after the political bloodshed of the spring. Some 10 million foreign visitors arrived in Thailand in the first eight months of this year, up 13% from 2009.

The iShares MSCI Thailand Index Fund (NYSE: THD) is up 30% since the start of July. So stick with it for now, even if there's some volatility, as latecomers should continue to push values higher.

Turkey Shoot
One of the most remarkable and little-noted events of the past month has been the stellar performance of the Turkish stock market, which investors can get a piece of through the iShares MSCI Turkey Index Fund (NYSE: TUR).
Istanbul's ISE 100 Index smashed through its all-time high in July, and by mid-September, the index was trading around 63,400 - up 20% from the beginning of the year.

Turkey's economy grew 10.3% year-over-year in the second quarter, solidifying the country's leading position among emerging markets. The government said it expects GDP growth to come in at 7% for the year.

A lot of the growth is external as Turkish construction companies have become leading builders in the Persian Gulf and Russia, but growth at home was the most impressive this quarter. Manufacturing grew 15.4% in the second quarter, while the domestic construction industry expanded 22% and trade grew 14%. Non-state consumption grew 6.2%, while government consumption grew 3.6%.

These are outstanding numbers for a small economy. And due to the wonder of low-cost exchange-traded funds, it's a simple matter for us to participate in this growth in a way that would have completely eluded investors just five years ago.

It's TUR's turn.

Latin America Heating Up
Finally, Latin America is an underdog unleashed.

In Brazil, nearly two million new jobs were created in the first eight months of this year. That's three-times the number of jobs created in the United States, which has 120 million more residents, and an economy that's five-times larger than that of Brazil.

In Peru, economic growth hit 9.1% in July. And while the United States, Japan, and United Kingdom drown in debt, Chile - the world's largest copper producer - is now a net creditor.

In fact, public debt levels throughout Latin America are well below those of most developed countries, including Canada. Chile's central bank on Sept. 17 boosted interest rates to 2.5%. That was the fourth interest rate increase in as many months. The Chilean economy, fifth largest in South America, is on track to rise 6.5% in the second quarter, the best since 2005.

Right now I'd say Chile is an even better bet than Brazil. You might take a look at Vina Concha y Toro SA (NYSE ADR: VCO), a producer of very-high-quality wine. It's currently trading at 21 times earnings, with a dividend of 3.92%. That's a somewhat premium valuation, but I like the dividend and Vina Concha is unquestionably a premium company.

Source :

Money Morning/The Money Map Report

©2010 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 - 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