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A Simple Way to Quadruple Your Gains in Emerging MarketsBy
Thursday, November 14, 2013
Something unusual happened at the beginning of November…
For the first time this year, my True Wealth Systems computers delivered a NEW buy signal on one of our favorite strategies...
When it's in "buy" mode, this signal has delivered a 17% compound annual return on emerging markets. That's more than four times what you get with "buy and hold."
And we have an easy way to make this trade…
The best index for tracking emerging markets around the world is the benchmark MSCI Emerging Markets Index. This index is volatile. Emerging markets go through huge booms and busts… And a "buy and hold" strategy has only returned around 4% over the last 20 years… But as I said, our system more than quadruples that return.
This system is in "buy" mode roughly half the time. When it's in "sell" mode, emerging markets have lost 8% a year (compound annual return).
You can see this system in the chart. Green means "buy," and red means "sell."
 So what is this system?
We call it our emerging-markets "Double Bull" system... It combines our two main emerging-markets signals.
Our two emerging-markets signals are 1) the trend and 2) the "7 Markets Trader" system.
The trend signal is simple. We track the overall movements in emerging-market stocks. When the trend is up, we want to invest. And as of this month, a new uptrend is here.
Our "7 Markets Trader" signal is what makes the "Double Bull" system so powerful. We look at seven major emerging markets: Brazil, China, India, Mexico, Russia, South Africa, and South Korea. Without giving away the exact details, this system is in "buy" mode when you have more new highs in the last 12 months than new lows.
And just this month, our "7 Markets Trader" system is finally back in "buy" mode.
With both emerging-markets systems flashing green this month, we have a huge opportunity in front of us. And you can easily take advantage of it with the iShares MSCI Emerging Markets Fund (EEM). This fund tracks the MSCI Emerging Markets Index.
History shows you REALLY want to be in the trade when both systems say "buy" at the same time. The Double Bull buy signal only happens roughly half the time, but your wealth could compound at 17% a year, based on history. That is incredible.
Good investing,
Steve
Further Reading:
Emerging markets are pushing higher for the first time in years. This is right in line with Steve's economic recovery "script." And he believes the final – and most profitable – act is just beginning. Learn more here: Make Hundreds-of-Percent Gains in "Act III"... Starting Now.
"In recent years," Steve writes, "Chinese stocks have moved sideways and down, so American investors have forgotten about them." Right now, some of the biggest blue-chip names in China are dirt-cheap. Click here to learn Steve's safe, long-term way to trade them.
Market NotesTHE "PICKS AND SHOVELS" PLAY ON HIGH OIL PRICES The world's biggest oil companies are spending hundreds of billions of dollars to produce oil... and oil-services stocks are booming.
Regular DailyWealth readers are familiar with using "picks and shovels" to profit from sector and commodity booms. "Picks and shovels" providers don't bet the company on one project... They sell vital goods and services to an industry. The "picks and shovels" companies in the oil sector are called "oil services" companies. They maintain, repair, and manufacture equipment for drilling... And they provide research and advice.
Today's chart shows the past year's action in the PowerShares Oil & Gas Services Fund (PXJ). The fund is a "one click" way to own the biggest names in the sector (like Schlumberger, Halliburton, and Transocean).
As you can see, PXJ is enjoying a big rally. Shares are up 45% over the last 12 months and just hit a five-year high. High oil prices have producers spending lots of money... and it's a bull market in oil services.
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