Short-term speculators are selling Asian stocks in their droves. No more so than in my favourite market of them all: Vietnam.

Does mean the end of the great emerging markets trend?

On the contrary, here at Profit Hunter we believe it presents you with an even better chance to buy.

As short-term traders pile out of Vietnam, we seriously recommend canny long-term investors PILE IN.

And we’ve uncovered the perfect way to play…

Like a slingshot, Vietnam is pulling back. Be ready when it goes off

See, we regard Vietnam as the “sling shot” economy of the next 20 years.

“Slingshot” is the term we use to describe a hitherto ignored market.

A market that takes off suddenly and rapidly after attracting a raft of state, domestic and international investment…

True to form, Vietnam pulled-in $15 billion in foreign funds last year alone.

“Slingshot” markets tend to emerge in developing countries where there has been major economic reform, a relaxing of market controls and a year-on-year increase in GDP…

Vietnam is experiencing all these in abundance.

We saw exactly the same global economic shifts in China and Russia 5 years ago.

That’s why the recent volatility in Vietnam’s performance only strengthens our view that the “slingshot” is being pulled back even more. When it comes off, we see carefully positioned investors making a packet!

But before I reveal this exciting opportunity, let me explain why the Asian markets are taking a breather, and crucially, why it won’t last forever…

Vietnam is a victim of its own success

As we’ve seen, its dazzling economic performance has attracted an unprecedented level of foreign money.

But that tide of money has had some unintended side effects: It has led to too much liquidity in the financial system, and that’s fuelled inflation.

Right now, inflation in Vietnam is running at 25.2%. And it’s spooked a lot of short-term foreign investors.

With Western markets reeling in the wake of the credit crunch, Asian markets suffer as international profit seekers lose their appetite for riskier investments.

Now there isn’t much Vietnam’s government can do about that – but what it IS doing is taking real measures to tackle inflation.

Last week, it raised interest rates from 8.75% to 12%. And I believe they will have to go higher before they have a positive impact. But it’s an important first step.

Not only that, it backs-up an important point we made when we first recommended investing in Vietnam on 3 July last year: This is a country where the government is willing to sacrifice short-term growth to ensure the long-term development strategy remains on-track.

And that’s precisely what you need to look for when you’re investing in a macro growth story like this one.

Buckle-up and hold on for the ride

Short-term speculators may be tempted to bolt for the door. But long-term investors’ interest in the country has actually been rising…

The country received foreign investment pledges of $15.3bn between January and May this year. That’s more than double what it received in the same period last year.

And it underlines our optimism for the country’s growth prospects.

Right now, Vietnam is the most oversold market in the world.

After the recent falls, its market is trading on a price-to-earnings ratio of just 11, which makes this market dirt cheap.

In other words: It’s a screaming buy.

If you aren’t already in it, you ought to be.

Our advice is to get in now, buckle-up and hold on for the ride!

Regards,

Manraaj Singh
Editor
Profit Hunter

Source: Asian Markets Oversold! Buy Vietnam ‘Now’