Sunday, July 12, 2009

China Up 82% Despite U.S. Sell-Off. What's Next?

The headlines are hard to ignore.

Every day, it seems, there's fresh news crossing the wire about the U.S. dollar losing more of its value against the Euro, British pound, and even the Canadian dollar.

For years, investment advisors have been telling you, "Diversify! Put part of your portfolio into international equities!"

Well, they were right.

So far in 2007, the S&P 500 index has been flat. You would have been better off putting your money in a passbook savings account than in the U.S. stock market.

Meanwhile in Asia, stocks are up almost 30%. European stocks are up almost 15% and the Canadian market has surged 23%.

The best-performing stock market in 2007 so far? China, returning a staggering 82% gain.

The message is clear: If you haven't been investing overseas, you have been missing out. Big time.

In fact, over the past five years, the performance of U.S. stocks ranks dead last among the world's biggest economies.

International diversification isn't just something to dabble in anymore - it has become absolutely vital to protecting your wealth.

Trouble is, there are a staggering 40,000 publicly traded equities to choose from worldwide. And holding the right ones in your portfolio can make an enormous difference to your personal wealth.

Unfortunately, you can't simply tell your broker "buy me some international funds or stocks," close your eyes, and hope for the best. You need an experienced guide who can help you separate the winners from the losers.

But how do you know which countries are heading into raging bull markets...and which are turning into bears? That's where John H. Christy III can help.

For instance, John told his newsletter subscribers to buy shares of Nokia, the Finnish cell phone company, at the start of 2007. While others are nervously watching the Dow Jones plunge this summer, readers who followed John's advice and bought Nokia were sitting on a gain of more than 100%!

A Chartered Financial Analyst (CFA) holder and former senior research analyst for a global investment management firm with a B.A. in economics, John Christy is also a veteran financial reporter, having worked for Forbes magazine for a decade.

At Forbes, John traveled the globe covering international markets -- and was instrumental in the launch of Forbes Global, the magazine's international edition.

So on-target was his analysis of global economies and equities markets, that we noticed a pattern with his reporting: When John said an economy was poised to grow, or a market was ready to rebound, it often did � making investors rich as a result.

To help our Forbes preferred readers profit from John's astute analysis of global markets, we stole him away from Forbes magazine … and created a new financial advisory letter just for him: The Forbes International Investment Report.

As a Forbes preferred reader, you are invited to become a charter subscriber to The Forbes International Investment Report at a $50 savings.

The first question I asked John Christy after he was promoted to his new position as editor of his own monthly letter was, "John, what are the top global equities our readers should buy right now?"

John rattled off a list of half a dozen stock picks from around the globe, which we promptly put in a special report exclusively for his subscribers. Less than a year later, those stocks are up an average of 50%!

We were so impressed that we commissioned a NEW Special Report, "6 Must-Own Emerging Market Stocks".

Emerging market stocks have been on fire. The Morgan Stanley Capital International index of stocks in developing nations has risen 32% since the start of 2007. Meanwhile, the S&P 500 is flat--and it has been a very bumpy ride.

With John's Special Report in your hands, you'll immediately be able to position your portfolio to profit from some of today's most promising emerging market stocks.

Including:

** EMERGING MARKET WINNER #1: THE CHINESE PERSONAL COMPUTER BOOM … China's red-hot economy is driving a boom in consumer spending on things like computers and cell phones. Why not buy shares of China's #1 computer maker? This Hong Kong-listed company not only dominates the Chinese PC market, but it is also emerging as a truly global player. Shares have risen nearly 80% this year and John believes there are still plenty of upside to come. 

** EMERGING MARKET WINNER #2: OUTSOURCING TO INDIA … the biggest trend to affect IT in America in the last ten years is outsourcing of programming, help desk, and other IT services to India, a nation in which economic growth could hit double digits this year. This company is a dominant player in India's outsourcing business � and it's a cash machine: no debt, a 5-year average return-on-equity of nearly 40%, and EPS growth of 32% a year over the last 5 years.

** EMERGING MARKET WINNER #3: CENTRAL ASIAN TELECOM … based in Turkey, this wireless provider has a lock on the local market as well as exposure to rapidly developing nearby markets including Azerbaijan, Moldova, Georgia and the Ukraine. Mobile phone subscription growth throughout Central Asia has been advancing at a blistering pace, but these markets are almost impossible for individual investors to tap into. John's report shows you how to take advantage of this exciting opportunity with a New York Stock Exchange-listed company.

Now, the bad news is: you can't buy "6 Must-Own Emerging Market Stocks" anywhere, at any price.

But the good news is that you can get a copy of John's new emerging market stocks report absolutely FREE when you subscribe to The Forbes International Investment Report at a special charter price savings.

When you diversify into global equities, you can always make money, simply because there is ALWAYS a stock market somewhere on the planet that's bullish � regardless of whether the Dow is up, down, or flat.

Don't forget: the U.S. is only 5% of the world's population. Yet many Americans are investing 95% to 100% of their money in U.S. markets. That's just not a logical way to save for one's retirement or wealth preservation and creation.

"A lot of people claim that international investing is risky," says John Christy. "But the real risk is NOT investing overseas." John notes that in the past three years, international stocks have delivered almost a 10 percentage point yearly advantage over the U.S. market.

Yes, the Internet has made it easier than ever to do stock market research. But the sheer amount of information � financial statements, investor presentations, conference calls, global newspapers � can be overwhelming. And you can lose your shirt no matter how many conference calls you listen to, or how many Indian Web sites you visit.

As a writer at Forbes, a news editor on Bloomberg's Tokyo finance desk, and a financial analyst at a global asset management firm, John Christy has an in-depth, first-hand knowledge of key global markets that most other analysts cannot duplicate.

And now that he can devote 100% of his time to researching global investments � 50 hours a week, 50 weeks a year � he can do all the work. So you don't have to.

In addition, during his 12+ years as a Forbes reporter, John built a Rolodex of contacts that reads like a "Who's Who" of international finance � from the Chief Investment Officer of Templeton to Morningstar's 2003 "International Fund Manager of the Year".

So when John needs the real story on a particular nation's economy, he calls bankers, economists, and investment advisors who live and work in that country � giving you an insider's perspective that other editors cannot provide.

I asked John Christy why Forbes preferred readers should read The Forbes International Investment Report.

"Two reasons," says John. "First, market-beating performance: our goal is to outperform the global benchmarks while protecting your capital … and so far, our portfolios have done exactly that".

"Second, we take a long-term view, owning stocks with a 3 to 5-year investment horizon. Our portfolios are 'buy and hold,' reducing trading and commissions".

A 1-year subscription � now available with a $50 savings for a limited time only � brings you 12 monthly issues plus unlimited 24/7 access to our subscribers-only Web site, which includes an online archive of all past issues.

In each issue, you get:

** "Editor's Letter" � on page 1 you'll find John Christy's update and analysis of global economies, international equities markets, and companies to watch.

** "Monthly Focus" � an in-depth report on a specific country including economic conditions, stock market performance, demographics, fastest-growing industries, top-performing companies, and more.

** "Stock Profiles" � new recommendations on 2 to 3 stocks to add to your international portfolio.

** "Global Gurus" � John's exclusive interview with a mover-and-shaker in a major global equities market, giving you insight into that nation, and its investment opportunities, not available from any other source.

** "Core Portfolio" � an update on the performance and latest recommendation (buy, hold, or sell) on John's best international investing ideas … for readers who want broad exposure to Europe, Asia, and Emerging Markets.

** "Asia-Pacific Portfolio" � a stock portfolio that focuses on Japan, Korea, Taiwan, Singapore, Australia, and New Zealand. Each company is carefully selected based on its individual investment merits rather than just its location or sector.

** "European Portfolio" � our top investments in Europe, which has become a hotbed of merger and acquisition activity this year. Several of John's recommendations have already been taken over at substantial premiums. Each company in this portfolio is a world-class leader that will thrive no matter what the macroeconomic and political picture looks like on the Continent.

** "Emerging Markets" � an aggressive portfolio of stocks from Asia, Latin America, Europe, the Middle East, Africa, and other developing markets, designed to give you greater returns but at higher risk than our other portfolios.

** "Hotlines" � whenever there's an equity to buy or sell between monthly issues, we'll tell you exactly what to do � and why � with an e-mail Hotline alert.
Most people I know are not diversified nearly enough.

When you live in the U.S. … work in the U.S. … and have all or most of your money invested in U.S. companies … you are highly exposed to the U.S. economy every day you wake up!

And as it happens, the U.S. stock market had a great year in 2006, but the S&P 500 was only up 12%. Not bad, but it pales in comparison to the returns available overseas. Like Russia, up 55% last year, or India, which delivered a 40% return. Even less-exotic markets performed extremely well. Ireland rose 43% and Spain's market rose 50%.

With John Christy's in-depth research, you can safely allocate a portion of your assets into global markets. So you make money even if the U.S. stock market falls.

After so many global markets produced eye-popping returns in 2006, international stocks were allegedly supposed to slow down this year--but to the contrary, international stocks continue to beat their U.S. peers. And John sees this trend continuing again in 2008.

Best of all, there's no risk of any kind to try The Forbes International Investment Report. If you're not 100% satisfied, simply cancel at any time for a full and prompt refund of the unused portion of your subscription. It's that easy!

To start your charter subscription to The Forbes International Investment Report … and to claim your FREE Special Report, "6 Must-Own Emerging Market Stocks" … and save $50 off your subscription price.

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