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China

How to Profit From China's Economic Role Model: Singapore

China's economic model has been extremely successful. But, they didn't pull it out of thin air. In fact, they had a very important role model - Singapore - that might just show investors hotter returns than the overheated Chinese stock market. Read this report to find out how to make extreme gains from Singapore.

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Three Ways to Profit From the World's Luckiest Country – Australia.

When the late Donald Horne called Australia the " Lucky Country" in 1964, the professor and well-known social critic meant it as an insult: He believed that while other countries were getting rich by developing special skills and embracing new technology, Australia prospered just because it happened to sit on a pile of valuable natural resources.

Well, in the global world of 2010, skill and technology are " two-a-penny" ubiquitous in an emerging-markets world in which billions of industrious people are competing against one another. In this new reality in today's world, natural resources are the key to global wealth.

And Australia is a prime beneficiary of that new reality.



For three ways to profit from this "new reality," please read on...

Despite Talk of a Bubble, Indonesia Is Still a Profit Haven for Investors

Several readers who know of my affinity for Indonesian stocks have sent me articles reporting that one of the country's bank officials had expressed discomfort over the Jakarta's rising stock market and raised the specter of new capital controls.

I have been investing in emerging markets for a long time, and have found that the news services often pick up these kinds of comments from random officials that are then contradicted a day later by some other random official.

And that was the case this time, too.

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China Deepens Ties with Iran and Venezuela In Spite of U.S. Consternation

Just as the United States makes an impassioned push for tougher economic sanctions on Iran, China is reportedly increasing its gas exports to the volatile Middle East nation.

Chinaoil- the state-owned China National Petroleum Corp's (CNPC) trading unit- shipped two cargoes totaling 600,000 barrels of gasoline to Iran in exchange for $55 million, according to Reuters. The cargoes were Chinaoil's first direct sales to Iran since at least January 2009, according to Reuters data.

Additionally, Unipec- the trading arm of the China Petroleum & Chemical Corp. (Sinopec) (NYSE ADR: SNP)- agreed to sell 250,000 barrels of gasoline to Iran.

The sales couldn't come at a worse time for the United States. Washington has spent months lobbying the international community to tighten sanctions on Iran, which is openly expanding its uranium enrichment capacity.

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Buy, Sell or Hold: Is Pfizer Inc. (NYSE: PFE) the Right Prescription for Your Portfolio?

In 2008, the journal Health Affairs reported that 25% of China's adult population  - about 375 million people - was "overweight" or "obese."

That number is expected to double by 2028, and obesity is just one health issue in a densely polluted nation that finds itself battling a growing list of ailments.

So it's no surprise that China's pharmaceutical market has been surging at a compounded annual growth rate (CAGR) of more than 16% -- the fastest pace in the world, according to research by market-intelligence leader IMS Health Inc. (NYSE: RX). IMS Health estimates that by 2020 the Chinese market for pharmaceuticals will be $110 billion, second only to the United States.

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How to Profit As Copper Becomes the "New Gold"

Copper is a key metal that keeps the world economy humming. Used in art and industry, copper consumption has grown by 4% a year since 1900. But, for some reason, everyone in the world still prefers gold. Read this report to discover why copper may become the "new gold" for investors. And, find out the best ways to profit from copper's rise.

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Money Morning Mailbag: Can Anyone Fix the Fiscal Mess?

As opinions continue to pour in to the Money Morning mailbag, something is becoming quite clear: People are getting fed up with the national and global "fiscal mess." The pessimists outweigh the optimists and are tired of standing idly by watching ineffective financial policies.
As the United States continues to spar with China on currency issues and Greece has yet to make substantial strides toward recovery, U.S. taxpayers and investors fear that our country is headed for worse economic times. Despite the fact there's a financial reform bill on the horizon, there is overwhelming doubt that the government will implement as much of a financial system overhaul that's needed. 
Here are some of the more passionate views on the government mistakes that caused a U.S. financial quagmire, threatening the country's future stability.

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Chinese Real Estate: Four Ways to Profit From the Biggest Urban Migration in History

SHANGHAI, The People's Republic of China - Given what you may have heard about Chinese property values in recent months, it may surprise you to learn that Chinese real estate investors are extremely value oriented.

And so are the institutional investors I've run into during my latest investment-research visit to this country. These institutional players want to lock up some valuable land parcels before 2020. That's the date by which 500 million Chinese citizens are expected to have moved into China's cities as part of the greatest urban migration ever recorded.

You can do the math: We're talking about a group that's 1.6 times the entire U.S. population ... moving from China's countryside to its cities in the next 10 years.



To discover four ways to profit from this massive migration, read on...

China's Explosive GDP Growth May Force Government to Raise Yuan and Interest Rates

China's economy raced ahead in the first quarter at the fastest pace in almost three years, underscoring concerns about overheating and prompting speculation that the government will be forced to raise interest rates in addition to scrapping the yuan's peg to the dollar. China's gross domestic product (GDP) rang up unexpectedly strong annual growth of […]

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Obama Gains Ground on China Trade Policies as Hu Refuses to Rule Out Floating Yuan

President Barack Obama pushed against potentially unfair trade policies on two fronts in Monday's meeting with Chinese President Hu Jintao and appeared to win a small victory when Hu didn't completely rule out letting the yuan appreciate.

After Obama urged China to move toward a "more market-oriented exchange rate," Hu told him that his country wouldn't yield to "external pressure" in deciding when to adjust the yuan, Bloomberg News reported.

Obama also expressed "his concern" about some "market- access barriers in China," Jeff Bader, senior director for Asia at the National Security Council, told reporters after the meeting, which was held in conjunction with a gathering of world leaders in Washington to discuss nuclear security.

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Washington – Not China – Is the Real Manipulator Here

SHANGHAI, People's Republic of China - China just posted its first monthly trade deficit in nearly six years, a $7.24 billion shortfall for March that essentially torpedoes Washington's argument that the Asian giant is a "currency manipulator" of the worst kind.

The Obama administration's assertion that China is artificially keeping the yuan undervalued to gain a global competitive advantage isn't just misguided: It actually demonstrates that Washington lacks even a basic understanding of global economics. Given that the same U.S. leaders who have been pushing to hang this manipulator label on China and impose sanctions are the same ones who tried to end the financial crisis by creating a river of debt that will haunt us for years, I can't say that I'm surprised.

As the U.S. argument goes, pegging its currency to the dollar gives China a distinct advantage when it comes to less-expensive manufacturing and a strong export market. The implication is that somehow this is negatively impacting our economy, or - in a variation of the same logic - holding back our recovery. Washington points to the massive trade deficits we regularly run with that country as evidence of China's currency-market wrongdoing.

In reality, China's pegged currency has done two things. First, it's allowed the United States to keep its inflation rate at a much lower (and more-manageable) level than it should have been in view of the $14 trillion in debt that this country has taken on.

And, second, it's allowed China to fuel its own stimulus package while at the same time assuming a meaningful role in the ongoing global recovery.



Let's take a minute to talk about why this is true.

China Auto Sales Off to a Strong Start

China topped the United States in auto sales for the first time ever last year, and it looks poised to keep its crown as the world's largest auto market this year as car sales in China got off to a strong start in the first quarter - soaring 76% from 2009.

Some 3.52 million cars were sold in China in the January-March period, according to the China Association of Automobile Manufacturers. The strong showing was partly the result of weak 2009 sales but it was enough to convince carmakers to raise their regional sales forecasts.

General Motors Corp., which leans heavily on its joint venture Shanghai General Motors Co. Ltd., said it would hit its target of 2 million sales in China this year, putting the company four years ahead of schedule.

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Foreign Markets Outshine U.S. on Investors' Increasing Appetite for Risk

U.S. stocks carved out one of their patented half-percent advances last week -- a little sloppy, to be sure, yet not bad at all considering their very overbought condition.

The stars of the global capital show this month, though, have been markets in China and Europe, as they shook off their multi-month torpor to score big wins. With a scorching 6% advance in the past two weeks, ishares FTSE Xinhua China 25 Index (NYSE: FXI) nosed up to log a +5.5% gain for the year after being negative for three months. And the ishares S&P Europe 350 Index (NYSE: IEV) rose 1%, putting it at flat for the year after malingering below zero.

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Click Here to Read more on which foreign markets are moving higher

China May Let Yuan Appreciate Despite First Trade Deficit in Six Years

China's imports pushed higher in March, which may cause the Asian economic powerhouse to post its first trade deficit in six years.  But even though the deficit bolsters its argument for keeping the yuan pegged to the dollar, it appears Beijing will let its currency appreciate in the near future.

Rising commodity prices probably led imports to outpace exports by $390 million in March after a $7.6 billion trade surplus the previous month, according to the median estimate in a Bloomberg News survey of 26 economists.

Nevertheless, a change in China's currency policy is "imminent", and may occur in the next few weeks, Ben Simpfendorfer, a Hong Kong- based economist at Royal Bank of Scotland Group Plc (NYSE ADR: RBS), said Friday on Bloomberg Television.

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Geithner's China Jaunt May Signal Easing of Tensions on Yuan

In a surprise move, Treasury Secretary Timothy Geithner will meet with Chinese Vice Premier Wang Qishan in Beijing today (Thursday), as speculation increases that China is considering letting its currency, the yuan, rise against the dollar.

The unexpected meeting was arranged on-the-fly after Geithner's scheduled trip to India, and may be a sign that both countries are seeking to defuse the currency issue ahead of Chinese President Hu Jintao's trip to Washington next week.

The move follows the Treasury Department's decision last weekend to delay a decision on whether to label China a "currency manipulator."

"[China is] becoming more open to the world, and with that, you're going to see the [yuan] take on a broader role internationally," Geithner said in a Bloomberg Television interview in Mumbai as he finished preparations for the previously unscheduled visit to China. "That's a healthy, necessary adjustment."

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