Brazilians used to joke that their country was the country of the future – and always would be because a new crisis seemed to crop up every time the economy came close to fulfilling its potential.
Keep an eye on the Chinese and Brazilian stock markets on Monday.
Last August, in an exclusive article to Oxford Club members, I badmouthed decoupling – the theory that the rest of the world (particularly emerging economies) could somehow party on while the U.S economy endured a recession.
For quite some time I was interested in recommending that my readers invest in Russia. I still had concerns about some political issues and organized crime in the country. Most experts out there tell people to stay away from Russia, so I knew I had to do further research myself.
India’s weekend election gives the ruling Congress Party a big win and paves the way for economic reforms.
From the tidal wave of e-mails and comments I have received from numerous different sources I am under the impression that most investors view the recent rally in the world’s stock markets as a bear market rally. I suppose we would need to define a bear market rally as a rally that fails to make a new all-time high (for the S&P 500, above the 1576 reached in October 2007) and is also followed by a new low for this cycle (below 666 for the S&P 500 reached in early March 2009).
China has established itself as an emerging market powerhouse in the last decade. It continues to post double-digit growth rates, even as the US and Europe slip into recession. But Irwin Greenstein says it could be about to hit a Great Wall. Conventional wisdom has it that China is relatively immune from a global slowdown because of its growing domestic market. The problem with this theory is that many Chinese consumers have lost their shirt on the tanking domestic stock market.
Senior members of the Communist Party of China (CPC) will meet next month in Beijing to discuss reform and development in the rural areas, according to an article in today’s China Daily.
If the reforms that come out of the meeting are strong enough potash could see a major boost, according to emerging markets expert Irwin Greenstein.
Irwin says there are nine major potash players worth a look. Depending on the outcome of the CPC’s Beijing powwow, Potash could become one of the best indirect China plays out there.
Bailout fever is spreading. China is now considering a bailout of exporters. According to China Daily, Chinese exporters are suffering mightily as the global economy weakens. This is a clear indicator that the Chinese economy could be heading for trouble, says Irwin Greenstein, writing for Contrarian Profits.
Two coinciding events in the oil industry point investors to a little-known opportunity in Southeast Asia, says emerging markets expert Irwin Greenstein.
While the Georgian conflict grabbed the headlines, a related news piece out of London was all but buried. To see the entire opportunity, however, you really need to follow the bread crumbs, which lead you to Southeast Asia.
It’s all about logistics, says Irwin. In particular, the challenge now facing China of sourcing reliable supply of oil that doesn’t rely on pipeline transportation.