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At These Levels, Investors in This Market Have Always Made MoneyBy
Wednesday, December 3, 2008
Last week, I traveled up the world's longest indoor escalator... rising 12 floors to the ceiling of a mall.
Is it time to invest in Asian property? Peter Churchouse says it is.
Take Singapore REITs, for example. They are paying 15% dividend yields... and many of them are backed by large investments from the Singapore government.
Further Reading:
How to Buy a Dollar For 20 Cents... and Get an 18% Dividend Yield Market NotesMORE STOCKS TO ADD TO THE "REBOUND LIST"
Another asset to add to your rebound list… an asset that goes by the name "submerging markets" these days.
The real name for today's rebound asset is "emerging markets." These are stocks in high-growth economies like India, Brazil, and China. When times are good, investors go wild for these stocks and drive them up hundreds of percent. Brazilian stocks, for instance, gained more than 1,000% from 2003 to mid-2008. But when times are bad, emerging markets get destroyed. Brazil is down 70% from its summer high. Here's the thing about market rallies after a big decline: The assets that have been beaten down the most are the ones that rally the most. Our friend Jeff Clark likens this situation to a basketball pushed down to the bottom of a swimming pool. The farther it gets pushed down, the harder it comes back up. Emerging markets are now trading for super-cheap levels… most go for less than 10 times earnings and around book value. Like infrastructure stocks, emerging markets have big potential when the stock market puts together a rally. |
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