Investng in Asia and Gold, The profits keep rolling in!
Companies / Emerging Markets May 03, 2007 - 08:52 PM GMT
Larry Edelson writes : Wow, are the profits rolling in or what? For example, the 13 Asian stocks I told you about last June are now up 32.5% — in just over ten months.
Had you bought 100 shares of each of those companies, you'd have open gains of $25,437. Sweet!
Naturally, no one has a crystal ball and I can't guarantee future results. But based on everything I'm seeing, I expect even more gains ahead, for both foreign stocks and natural resource investments!
| Company/Symbol | Per-share Gain* | Return* |
| Sinopec Shanghai/SHI | $15.87 | 35.9% |
| CNOOC, Ltd./CEO | $11.11 | 14.6% |
| Petrochina/PTR | $15.69 | 15.8% |
| Santos Ltd./STOSY | $3.45 | 10.1% |
| China Pet. & Chem./SNP | $35.53 | 69.4% |
| Alumina Ltd./AWC | $4.54 | 23.4% |
| Aluminum Corp. of China/ACH | $12.34 | 69.9% |
| Posco/PKX | $45.73 | 75.2% |
| Amcor Ltd./AMCR | $5.33 | 27.8% |
| Kubota Corp./KUB | $3.65 | 8.2% |
| Korea Electric Power/KEP | $1.96 | 10.5% |
| Huaneng Power Intl./HNP | $16.21 | 64.5% |
| Mitsui & Co./MITSY | $81.96 | 30.1% |
| Total: | $254.37 | 32.5% |
| * — 06/15/06-04/29/07 | ||
Reason: All the major forces I've been telling you about are still very much intact. In fact, they're getting stronger.
Today I'm going to give you an update on each of the major markets I follow. But first, I want to touch on one force that's powering all of my markets higher …
The Dollar Has Been Making Record Lows
The greenback is tanking, hitting record lows against the euro last week. Naturally, that's stirring up quite a bit of inflation.
But you haven't seen anything yet! The dollar is at risk of a complete and utter collapse in value. There's too much debt in this country … too little savings … the trade deficit is mushrooming higher … and now we have an intense split between our two main political parties.
Foreign investors do not like what they see. And odds are good that they won't be making any big bets on U.S. assets. So don't expect much from the dollar on the upside. Except for an occasional bounce, it's heading much, much lower.
Meanwhile …
The Price of Gold Could More Than Double And Remain Undervalued!
The inflation-adjusted peak price of gold is around $2,100. Yet gold is at $685 as I write this. So it could more than double and it will still be undervalued based on the terribly weak and falling dollar.
Meanwhile, the supply side of gold is terrible:
- Central banks have stopped selling the yellow metal … many are actually buying .
- New mine supply is falling by as much as 15%.
- And mining companies that previously hedged their gold reserves with forward sales are closing out those hedges and buying back gold themselves.
Meanwhile, central bankers around the world are flooding their economies with paper currency and credit, stirring up inflation like crazy.
Bottom line: I see virtually nowhere to go for gold prices but up . Consider buying the dips in gold because I see much higher prices on the horizon.
If you want a good gold mutual fund, take a look at two of my favorites, the Tocqueville Gold Fund (TGLDX) and the U.S. Global Investors Gold Shares Fund (USERX).
And if you want specific mining share recommendations, along with crucial timing signals, see my Real Wealth Report.
Now, let's talk about another natural resource that's below its inflation-adjusted peak price …
Black Gold Is Worth Playing For Mega-Buck Profits!
Measured in today's dollars, I figure oil's high is about $91 per barrel. And as the dollar falls more, the price of oil should rise even higher!
And here's something interesting you should take note of …
Last week, Saudi Arabia reported busting a ring of 172 al Qaeda-linked terrorists who were planning massive attacks on oil facilities in the Middle East.
Now, you'd think the price of oil would fall on this good news, right? Well, it didn't! Instead, the price of oil rocketed higher to end the week at almost $68 a barrel.
Look, when a market goes up on news that would otherwise be considered negative, you've got one heck of a bull market on your hands!
And there are many forces supporting the bull market in oil. One, as I already mentioned, is the weak U.S. dollar. A second is the plain and simple fact that demand for oil is way outstripping supply.
Demand is exploding in virtually every corner of the globe, driven higher by the best global economic growth in 30 years, and by the rise of three billion new capitalists in Asia.
We could see $91-a-barrel oil, even $100-a-barrel oil, in the weeks ahead.
What about gas prices? Unfortunately, I think they're headed higher, too. Nationally, the average price of a gallon of unleaded gas is already up $0.29 in the past month. And with the high-demand summer driving season approaching — not to mention another hurricane season — I wouldn't be surprised if you see $4-a-gallon gas this summer!
For my specific oil and gas recommendations, see my Real Wealth Report.
Foreign Markets Present Another Great Profit Opportunity …
If you want to make serious money — in addition to the big bucks available in the natural resource markets — then you should check out foreign stock markets.
Better yet, if you combine foreign stocks with natural resources, you can get the best of both markets!
Foreign stock markets, especially in Asia, are much healthier than those in the U.S. Look at the first-quarter gross domestic product numbers and you'll quickly see why:
U.S. growth was a horrible 1.3%. Meanwhile …
China posted a gain of 11.1%, growing almost nine times faster than the U.S.!
India expanded about 9%, seven times faster than the U.S.!
Singapore … Malaysia … Hong Kong … Indonesia … they all saw growth that quadrupled or quintupled what the U.S. did.
Heck, now even crusty old Europe is growing faster than the U.S.! The eurozone's latest GDP growth was 3.3%, nearly three times faster than the U.S. rate.
My point: Why would you want to invest in an economy that's growing at just 1.3% when there are all these other alternatives out there?
The U.S. has the slowest growing economy of all of the G-8 members . And out of the 30 largest economies in the world, the U.S. ranks 18th!
No wonder overseas stock markets are beating U.S. stocks. And no wonder all 13 of those Asian powerhouse stocks are winners right now.
Best wishes for your health and wealth,
By Larry Edelson
P.S. If you're not already a member of my Real Wealth Report , you can join right now at the deeply-discounted rate of just $99 a year. I'd love to see you get on board so you can get all of my recommendations and timing signals.
Click here to join immediately .
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