It’s become widely accepted when talking about emerging economies to focus on the so-called BRIC countries – Brazil, Russia, India and China. But there is a very important region that gets lost in that discussion.
Back on Feb. 17, as the market was on sell-off mode, I recommended buying The Coca-Cola Co. (NYSE: KO). The stock is up some 16% from our entry point. That’s because Coca-Cola recently reported a near-20% jump in profit, which soared to 67 cents a share, excluding restructuring charges.
With its huge emerging market and bullish presence as well as strong high margins, Coca-Cola Co. (KO) doesn’t look like it’s going to folllow the recent downturn in equity markets. Money Morning’s Horacio Marquez recommends that you jump on this stock.
Caterpillar Inc., (CAT) predicted zero economic growth worldwide in 2009 and announced it will shed 20,000 jobs over the next few months. The world’s largest maker of construction and mining machines issued its gloomy forecast after a downturn that began in the United States grew into a full-blown global recession, gutting orders for its equipment.
In 2000, investors thought the world was a “different” place. “You have to value Internet companies differently,” people would say. “Ignore the triple-digit P/E… That is an obsolete way to value a company.”
The established G7 markets are unlikely to see a recovery this year, but emerging markets will stay strong, according to IBM.
“If I were in a business model where I needed double-digit growth out of the G7 to drive my performance, I would be in a cold sweat,” said IBM’s CFO, Mark Loughridge, to Thomson Reuters.
“We’re not counting on a resurgence or recovery to achieve our growth for the year,” he said, referring to established markets in the G7 countries – the United States, Japan, Canada, Italy, Germany, France and United Kingdom.
There’s nothing worse than missing an amazing window of opportunity. When these great opportunities in the BRIC economies filter through to the mainstream – the chance to make huge profits is over. Get in ahead of the curve right now.
On the 16th of May… not far from where the Bolsheviks executed the Romanov’s… the four BRIC country’s are coming together to plot something similarly ominous for western economies. They’re going to pull it off as well… and there’s only one thing you can do about it.
What countries are truly the have and have nots of the world? Good friend and business partner Niels Jensen of Absolute Return Partners suggests we look at the old equation in a new way? Food and energy resources may be at least part of the definition in the future.
Some say that if the U.S. economy begins to shrink, we’ll see demand for metals drop, especially copper. Well, it doesn’t matter if the U.S. is in a recession or not because copper demand will continue to grow thanks to emerging economies like China, India and Brazil.