{"id":53048,"date":"2014-06-19T22:11:31","date_gmt":"2014-06-20T02:11:31","guid":{"rendered":"http:\/\/countingpips.com\/?p=53048"},"modified":"2014-06-19T22:11:31","modified_gmt":"2014-06-20T02:11:31","slug":"theres-always-an-emerging-market-somewhere","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2014\/06\/theres-always-an-emerging-market-somewhere\/","title":{"rendered":"There\u2019s Always an Emerging Market Somewhere\u2026"},"content":{"rendered":"
June 19, 2014<\/div>
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By MoneyMorning.com.au<\/u><\/a><\/p>\n

It’s an exciting time for investors.<\/p>\n

So exciting, in fact, that we’re working non-stop to bring you the latest and best investment ideas.<\/p>\n

It doesn’t matter whether those investment ideas are here or on the other side of the world.<\/p>\n

We’ve got a crack team of analysts scouring every market possible. And the great news is it seems as though our team of analysts is growing by the week.<\/p>\n

The question is: exactly where is the best place to invest right now…?<\/p>

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To be honest, we can’t think of a single equity market right now that isn’t<\/em> worth investing in.<\/p>\n

That may sound clichéd, or even recklessly bullish.<\/p>\n

But it’s truly the way we see the markets right now.<\/p>\n

If you want us to go into the whole interest rate story again, we will. But hopefully you’ve got the gist of it by now.<\/p>\n

Japan has had low interest rates, and has been too scared to raise them for 20 years. That’s exactly the situation facing most Western economies today.<\/p>\n

That means investor dollars will pretty much flow in one direction — into stocks<\/a>.<\/p>\n

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Exploring the investing frontier<\/strong><\/h2>\n<\/p>\n

But where?<\/p>\n

Which stocks?<\/p>\n

As we hinted above, there will be a wide range of markets to benefit from low interest rates.<\/p>\n

But there will be one type of market in particular that stands to benefit the most.<\/p>\n

It’s what we call the ‘frontier’ markets.<\/p>\n

Now, you may not be familiar with that term. If we say ‘emerging markets<\/strong><\/a>’ you’ll probably know what we mean.<\/p>\n

But the truth is that ‘frontier’ markets are so much more than emerging markets.<\/p>\n

A frontier market isn’t just about a geographical or political label.<\/p>\n

A frontier market could be an energy, medical or technology frontier<\/a>.<\/p>\n

Furthermore, investing in a frontier market doesn’t necessarily mean investing in some obscure company on the other side of the world.<\/p>\n

A frontier investment could be right here on the ASX.<\/p>\n

But where you find the frontier investment, the one thing we can say about them is that they offer some of the most exciting investment opportunities you’ll ever come across.<\/p>\n

It’s why we’ve gone to the effort and expense of hiring a specific analyst to cover this breaking market. You’ve met the analyst (Ken Wangdong) briefly in Money Morning<\/em> over the past few weeks. Over the next few weeks you’ll get to know him a lot more.<\/p>\n

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Profiting from crisis<\/strong><\/h2>\n<\/p>\n

But while the idea of frontier markets is fairly broad, there’s no doubt that a key component of frontier markets is emerging markets<\/a>.<\/p>\n

Emerging markets have been a hot topic in recent months. And as long as interest rates, stimulus, and political unrest continue to make front page news, then emerging markets will continue to present great investment opportunities.<\/p>\n

One of the most frustrating things from our point of view as a financial advisor and analyst is not being able to help investors fully take advantage of some of this year’s biggest geopolitical events.<\/p>\n

We’re talking about the kerfuffle between Russia and Ukraine, which could have given frontier investing speculators a 27.6% gain since mid-March.<\/p>\n

All it would have taken is a simple investment in the Market Vectors Russia ETF Trust [NYSEARCA:RSX]<\/strong>.<\/p>\n

Then there’s the turmoil in Thailand. An easy investment in the iShares MSCI Thailand Inv Market Index Fund [NYSEARCA:THD]<\/strong>, could have made you a 24.4% gain since the beginning of the year.<\/p>\n

And don’t forget the civil strife going on in Brazil right now, and which has been for months. Even so, an investor who punted on the iShares MSCI Brazil Index ETF [NYSEARCA:EWZ]<\/strong> in mid-March would now be up 27.4% just three months later.<\/p>\n

Compare that to a lousy 2.1% gain for the S&P\/ASX 200 index.<\/p>\n

Now can you see why we’re so excited about the potential for frontier markets?<\/p>\n

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Missed opportunities<\/strong><\/h2>\n<\/p>\n

The unfortunate fact is we just haven’t had an outlet to introduce these ideas to serious investors.<\/p>\n

And we’ve got no one else to blame but ourselves. The good news is we’re on track to put that right.<\/p>\n

The Aussie market is a great market for speculating. It has ample small-cap resources stocks, and it has a good biotech sector too.<\/p>\n

But what happens when the Australian stock market<\/a> is going through a quiet patch? That can happen. The Aussie market has gained barely more than 2% over the past three months, while emerging markets have soared.<\/p>\n

(Although a stock small-cap analyst Tim Dohrmann has recommended is up more than 325% in the same timeframe<\/a>, so opportunities do<\/em> show up even in a flat market.)<\/p>\n

This is all part of what we refer to as being an active investor. It doesn’t mean you have to be a day trader. It just means that you should always be on the lookout for new investment opportunities as they arise, wherever they arise.<\/p>\n

It’s clear. Central banks have given investors a message that interest rates aren’t going anywhere for as long as the so-called economic recovery remains fragile.<\/p>\n

If the recent economic history of Japan<\/a> is anything to go by, a weak economic recovery can remain fragile for a long time. That spells good news for frontier markets, as investors seek out riskier and higher yielding investments.<\/p>\n

Stay tuned for more details on frontier investing opportunities.<\/p>\n

Cheers,
\n Kris+<\/a><\/strong><\/p>\n

Join Money Morning on Google+ <\/u><\/a><\/strong><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au It’s an exciting time for investors. So exciting, in fact, that we’re working non-stop to bring you the latest and best investment ideas. It doesn’t matter whether those investment ideas are here or on the other side of the world. We’ve got a crack team of analysts scouring every market possible. And the […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-53048","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=53048"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/53048\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=53048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=53048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=53048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}