Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
British Pound GBP vs Brexit Chaos Timeline - 14th Sep 19
Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - 14th Sep 19
War Gaming the US-China Trade War - 14th Sep 19
Buying a Budgie, Parakeet for the First Time from a Pet Shop - Jollyes UK - 14th Sep 19
Crude Oil Price Setting Up For A Downside Price Rotation - 13th Sep 19
A “Looming” Recession Is a Gold Golden Opportunity - 13th Sep 19
Is 2019 Similar to 2007? What Does It Mean For Gold? - 13th Sep 19
How Did the Philippines Establish Itself as a World Leader in Call Centre Outsourcing? - 13th Sep 19
UK General Election Forecast 2019 - Betting Market Odds - 13th Sep 19
Energy Sector Reaches Key Low Point – Start Looking For The Next Move - 13th Sep 19
Weakening Shale Productivity "VERY Bullish" For Oil Prices - 13th Sep 19
Stock Market Dow to 38,000 by 2022 - 13th Sep 19 - readtheticker
Gold under NIRP? | Negative Interest Rates vs Bullion - 12th Sep 19
Land Rover Discovery Sport Brake Pads and Discs's Replace, Dealer Check and Cost - 12th Sep 19
Stock Market Crash Black Swan Event Set Up Sept 12th? - 12th Sep 19
Increased Pension Liabilities During the Coming Stock Market Crash - 12th Sep 19
Gold at Support: the Upcoming Move - 12th Sep 19
Precious Metals, US Dollar, Stocks – How It All Relates – Part II - 12th Sep 19
Boris Johnson's "Do or Die, Dead in a Ditch" Brexit Strategy - 11th Sep 19
Precious Metals, US Dollar: How It All Relates – Part I - 11th Sep 19
Bank of England’s Carney Delivers Dollar Shocker at Jackson Hole meeting - 11th Sep 19
Gold and Silver Wounded Animals, Indeed - 11th Sep 19
Boris Johnson a Crippled Prime Minister - 11th Sep 19
Gold Significant Correction Has Started - 11th Sep 19
Reasons To Follow Experienced Traders In Automated Trading - 11th Sep 19
Silver's Sharp Reaction Back - 11th Sep 19
2020 Will Be the Most Volatile Market Year in History - 11th Sep 19
Westminister BrExit Extreme Chaos Puts Britain into a Pre-Civil War State - 10th Sep 19
Gold to Correct as Stocks Rally - 10th Sep 19
Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - 10th Sep 19
Stock Market Sector Rotation Giving Mixed Signals About The Future - 10th Sep 19
The Online Gaming Industry is Going Up - 10th Sep 19
The Unknown Tech Stock Transforming The Internet - 10th Sep 19
More Wall Street Propaganda - 10th Sep 19
Stock Market Price Structure Still Suggests We Are Within Volatile Rotation - 9th Sep 19
Stock Market Still Treading Water - 9th Sep 19
Buying Pullbacks in Silver & Gold - 9th Sep 19
Government Spending - The High Price of a "Free Lunch" - 9th Sep 19
Don't Worry About a Recession - 9th Sep 19
Large Drop in Stocks, Big Rally in Gold and Silver - 9th Sep 19
US Stock Market Hasn’t Cleared The Storm Yet - 8th Sep 19
Precious Metals Were Ripe for a Pullback - 8th Sep 19
Market Chart Patterns to Spot High-Confidence Trading Opportunities in a "Pinch"! - 8th Sep 19
Five Feet High And Rising - Stock Market Bulls False Sense of Security - 8th Sep 19

Market Oracle FREE Newsletter

The No1 Tech Stock for 2019

Asian Emerging Market Stocks Rocket on Strong Growth Outlook

Stock-Markets / Emerging Markets Jan 30, 2008 - 02:02 AM GMT

By: Money_and_Markets

Stock-Markets

Best Financial Markets Analysis ArticleTony Sagami writes: What an amazing bounce!

You may think I'm talking about last Wednesday's big 298-point rally for the Dow Jones, but I'm not. I'm referring to a much bigger bounce that happened across the Pacific Ocean on the same day:


»  The Hong Kong Hang Seng Index soared almost 11%, recovering every bit of its previous 8.7% loss and then some!

»  The Hang Seng China Enterprises Index , which tracks Chinese companies listed in Hong Kong, leapt 12%.

»  And the Indian, Australian, Singaporean, and Indonesian indexes rose as much as 7.9%.

In a moment, I'm going to tell you about some individual Asian stocks that shot even higher. They're what I like to call "Asian superballs" ... the kind of shares that bounce back just like those rubber balls my kids love to play with.

But first, I want to tell you why Asian markets are rebounding higher than their U.S. counterparts, and why they should continue to do so ...

Unlike the U.S., Asia Is Still Posting Unprecedented Growth!

China, the economic engine of Asia, is still growing by leaps and bounds regardless of any U.S. recession.

The National Bureau of Statistics just released its 2007 full-year growth figures for China and they were impressive ...very impressive!

China's industrial output surged in 2007!
China's industrial output surged in 2007!

Gross Domestic Product soared 11.4% in 2007, the fastest pace in 13 years and China's fifth straight year of double-digit growth.

Industrial output, an excellent measure of manufacturing strength, expanded 18.5% in 2007. China has become — and still is — the workshop of the world.

Retail sales rose 16.8% in 2007, proving that the growing Chinese middle class is becoming less dependent on U.S. sales to support their economy.

Per-capita income of urban Chinese residents reached 13,786 yuan (U.S.$1,907) in 2007, inflation-adjusted growth of 12.2% from a year earlier.

Spending on fixed assets — factories, office buildings, railroads, airports, etc — jumped by a whopping 24.8% in the last year.

Chinese consumers pushed up retail sales, too.
Chinese consumers pushed up retail sales, too.

Those numbers prove that the Chinese economy is still growing like mad. And let me tell you, continued growth is virtually guaranteed. Why?

China is still a command economy controlled by the Communist Party. Moreover, the country's leaders have $1.4 trillion in cash reserves at their disposal. That gives them the ability to flood their economy with new public works projects ... create jobs ... and keep things humming along.

That's exactly what they've done in the past!

During the 1998 Asian financial crisis, Beijing injected the Chinese economy with a huge influx of government cash that kept their economy growing at an impressive 8% rate.

China's Ministry of Railways is going to spend $41 billion on projects!
China's Ministry of Railways is going to spend $41 billion on projects!

And that's exactly what I expect this time around ...

Just recently, the China Ministry of Railways announced a major increase in its construction plans. It will now shell out $41 billion to lay 7,800 kilometers of track.

This Is Why I Suggest Buying Asian Superballs During Dips

If Asia's growth is going to continue, it makes sense to accumulate while everyone lets their emotions get the best of them.

Let me give you a real-life example ...

Last Tuesday, when the pre-market futures were indicating a 500-point Dow Jones loss, I sent out an urgent Flash Alert to my Asia Stock Alert subscribers.

One of the stocks I told them to load up on was E-House, the real estate company I mentioned right here in Money and Markets just two weeks ago. The shares traded as low as $15.02 on the day of my alert.

Then, last Friday, I sent out another Flash Alert telling them to bag their gains. Reason: E-House closed at $21.15. Do the math — that's a 40%-plus gain in just four days!

Now, I'm not trying to say I'm some sort of market-timing genius. Rather, I'm saying that the China growth story has years — if not decades — to run. Therefore, I think anybody who treats corrections as buying opportunities is going to be very happy with their results.

Just look at some of the other stocks that rebounded higher last week:

Arrow China Life Insurance gained 15.5%
Arrow HSBC Holdings rose 11.3%
Arrow PetroChina soared 17.5%
Arrow China Unicom shot up 15.1%
Arrow China Mobile skyrocketed 10.5%
Arrow Cheung Kong increased 10.4%

Perhaps the best part is that you don't have to open an exotic brokerage account to participate in these kinds of bounces. There are more than 100 Chinese stocks trading right here on U.S. stock exchanges.

But you cannot buy indiscriminately. Triple-digit returns will only come your way by investing in true Asian superballs.

Where can you find them? Well, if you're a do-it-yourselfer, the Bank of New York has a complete list of all foreign stocks traded in the U.S. You can start there, and then whittle down the list with some further research.

Or, if you want to know which stocks I recommend — and when I recommend buying them — I encourage you to try my Asia Stock Alert service, risk-free for 90-days .

But either way, as you can see from the E-House results, there are some big bucks to be made by investing in Asia right now!

Best wishes,

Tony


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 .

Money and Markets Archive

© 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