Category

Emerging Markets

Global Markets

Emerging Markets Just Got Red Hot Again

Brazil managed to pull off the 2016 Summer Games, South America's first ever, free of major problems or disruptions.

The same can't be said of the country's politics or its economy, though. Massive budget deficits, rocketing interest rates, and a plunging currency are linked with a widening corruption scandal that's brought down the president of Brazil and spurred violent civic unrest.

That doesn't seem like a likely source of market-beating 44% and 24% gains, but that's exactly what our Brazilian plays have returned over the past 10 months – a time that's seen plenty of global investors run away from the country's 200 million consumers.

Clearly, not every investor is running out on Brazil. In fact, a few of the world's smartest, richest investors are making a beeline for Brazil… along with other, similar markets that offer better diversification, higher yields, and bigger gains.

But you don't have to leave home for profit potential like this. It's really easy to buy...

Stocks

The Best Dividend Stocks to Buy and Hold Forever

Dividends play a key part in a portfolio's total return and have never been more important than during today's ultra-low interest rate environment.

That's why we're highlighting the three best dividend stocks to buy and hold forever.

The trio are marquee names that belong in every portfolio...

Market Correction

My Chart Shows Why We Can’t Trust These Market Highs

Good news is good news again – for now.

The Labor Department's announcement that July unemployment held steady at 4.9% while adding a better than expected 225,000 jobs was enough to snap the four-day pullback and get traders in the mood to buy.

Those numbers don't necessarily reflect the street reality of the economy, but of course they were enough to get the S&P 500 to yet another new all-time high, even if the Nasdaq Composite, Dow Jones Industrials, and the Russell 2000 didn't quite make it.

This is a near-term bullish development, especially when you consider that, before this recent upward trend, we've gone 14 months between all-time highs.

But... when you see the chart I'm about to show you, you'll agree it's not quite time to pop the champagne corks...

Stocks

Terror and Chaos Can’t Stop the Markets, but I Know What Will

Uncertainty seems to be the only sure thing in the world these days. Friday's failed, bloody military coup attempt in NATO ally Turkey comes at the worst possible time in the West's fight against Daesh in Iraq and Syria, just one day after the terror group pulled off a horrific attack in the south of France.

Here at home, we've had several high-profile incidents of violence and civil unrest during one of the most heated, tense presidential election campaigns in modern history.

Yet if you only follow stock markets, you'd barely know anything was amiss. With record highs on the Dow Jones Industrials and the S&P 500, there seems to be no stopping this thing.

But I'm not expecting this to last.

I'll show you what we're going to do when we get our pullback, but first I want to show you why these markets are so strong right now...

Global Markets

As The Markets Keep Dreaming, Listen for These Alarms

Markets have no memory. So once again they are rallying based on false hopes that central bankers will save them from themselves.

Despite a stealth bear market in many stocks, the major indices have recovered all of their 2015 losses in October. They've been boosted by several factors – large cap tech stocks, expectations for a delay in Fed tightening, more European QE, and further interest rate cuts by an increasingly desperate China…Such are the stuff that dreams are made of in the terminal stages of one of the biggest bull markets in history.

As I've written before, I believe that bull market is over and we are now likely entering a bear market. There are too many macroeconomic headwinds to sustain further stock market gains.

The Chinese economic miracle is over. Commodity prices are not going to recover any time soon...

Emerging Markets

The Search for Yield, Emerging Markets, and a Wacky Divergence

Let's talk a little more about divergence – as in wacky divergences.

Last time, we looked at divergence through the lens of interest rates and how rates – principally measured by the yield on the U.S. Treasury 10-year note – were going lower when they were expected to move higher as the Federal Reserve tapers its monthly bond purchases.

But there's another divergence at work, and it strikes me as dangerous.

We're talking about the rising prices of emerging markets stocks and bonds...

Emerging Markets

Stake Your Claim to $70 Billion of Global Growth

Emerging markets frequently promise better returns than their domestic counterparts.

Still, they come with a special set of (manageable) risks that we don't always find at home.

A profound reaction to the Fed's tapering, higher-than-comfortable inflation, current account deficits, and outright political instability have all made for a volatile 2014 in the emerging markets.

It's easy to see why. Investors are worried about how they'll be impacted by the tapering of the Federal Reserve's bond purchases. And now Brazil, India, Indonesia, Turkey, Russia, and South Africa are now experiencing inflation of 6% to 7%.

Those same countries are facing current account deficits of between 4% and 7%, which places downward pressure on their currencies and upward pressure on inflation and interest rates.

And political volatility in Russia, Ukraine, Turkey, and elsewhere are contributing to uncertainty that's reflected in market performance.

But the truth is, for investors who know what they're holding, these emerging markets still hold outsize profit potential.

And taking your share of this growth has never been easier, thanks to these special securities…

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Global Economy

The Emerging Market Game Changer Is Here

The group of five nations – Brazil, Russia, India, China, and South Africa, otherwise known as the BRICS – is making some intriguing financial, economic, and political moves.

They're committing tens of billions of dollars each to organize their own versions of an IMF and World Bank.

Many observers thought the BRICS nations would encounter too many obstacles to collaborate effectively.

But after announcing such plans just over a year ago, the next BRICS summit in July is likely to see the official launch of these institutions.

The implications are huge for investors...

Emerging Markets

This Emerging Markets Bet Is One of the Best Contrarian Investments of 2014

When it comes to emerging markets, risk takers can capture the most profits when exposed equities are down.

Buying opportunities emerge from a panic sell-off, leaving contrarian-minded investors the opportunity to pick up money that is just sitting in the corner. They zig while others zag, and they're willing to wait out the profits from deep-value picks.

To continue reading, please click here...

Energy Investing

This Texas Play Has All the Components of a Massive Energy Investing Winner

Marina and I returned home from Houston late Wednesday night. After trips to London and Mexico City, we were tired to say the least… but also very excited.

That's because our latest trip allowed us to spend several days visiting the initial drilling sites for Money Map Project #1 in South and East Texas.

To continue reading, please click here...