There's an easy way that can open up your portfolio to trillions of dollars in wealth that most investors are missing out on...
You see, U.S. stock markets' capitalization was $19.8 trillion as of 2015. That's a lot of money - but it's only a little more than half the world's market cap.
That means if you're only invested in U.S. stocks, you're missing out on huge profits from all the growth that's still very much underway all over the world.
Think about it - the United States and European Union have just barely managed to grind out 3% average economic growth each year for a decade. But there are places where economic expansion routinely tops 7%, and often much higher.
What's more, these markets are extremely undervalued right now. The U.S. media and Wall Street have done a good job of scaring investors out of these high-growth, high-profit markets - the emerging markets.
You've probably heard of the "economic slowdown" underway in China and talk of a "bubble" there. Even with the so-called slowdown, the Chinese economy is still growing by more than 6% every year.
And there's no need to take huge risks, either. You can grab all the profit potential these markets offer with a few easy-to-take, easy-to-protect positions.
We've prepared this investor briefing to show you exactly where the growth is, so you can target it dead-on. We'll show you how you can invest there with confidence, too.
An "emerging market" is a developing country whose economy is in a fast-growth cycle. It has some characteristics of a "developed" market, but doesn't meet the standards of a developed market just yet.
These markets used to be a somewhat obscure niche of the international investing world.
But not anymore.
As our global economy grows more interconnected and wealthier, these countries are playing an ever more important role in the global economic system.
In fact, more than half of global economic growth right now is driven by emerging markets.
In general, emerging markets have attractive characteristics that contribute to strong future growth, such as favorable demographics, growing consumption, relatively low debt levels, and room for productivity gains. Most of their growth is driven by domestic demand backed by a large population and surging middle class.
But not all emerging markets are created equal: Asian nations dominate the top of the list, followed by Latin America, followed by some African destinations.
Most importantly, the emerging markets "deck" has been radically reshuffled over the past year - a new order is emerging and new economies are coming to the fore.
The best ones - the ones we'll talk about today - have the momentum and resilience needed to stabilize growth and continue to be strong performers in the years ahead. The opportunities here have never been better.
You'll see in a moment what kind of returns you can get in these markets...
Most of these markets are rather weakly correlated with developed markets, meaning that if, say, the Dow Jones Industrials crash, these markets wouldn't necessarily do the same.
Of course, one of the basic principles of investing is that higher returns entail higher risks. Some of the risks to consider in emerging markets are currency risk, inflation risk, institutional risk, liquidity risk, and political risk. Any investor would be well-advised to have a firm grasp on their risk tolerance, and allocate capital accordingly.
That said, these profit recommendations all trade in the United States, on the New York Stock Exchange, BATS Global Markets, and the Nasdaq, with all the benefits that offers.
You see, emerging markets typically have fewer and smaller publicly traded companies than developed markets. But often times, these markets are the focus of exchange-traded funds (ETFs) that track the country's market performance, or their companies offer American Depositary Receipts (ADRs) - a certificate issued by a U.S. bank that represents ownership of a specific number of shares of a foreign stock.
These products are usually liquid and easily available to trade in the United States for investors looking to build emerging market exposure in their portfolios.
Emerging markets mutual funds also provide a simple way to gain access to these markets. These funds may buy stocks or bonds across the emerging market "universe," or focus on particular regions or even industries.
After all, these five markets are where some of the biggest and fastest growth on Earth happens...
India's economic growth rate (over 7%) exceeds China's as a key emerging market.
It's the fastest-growing major economy in the world, and its government expects even faster growth this year as Prime Minister Narendra Modi's consolidation of power and his party's state election victories are expected to bring the deep structural changes needed to support and, importantly, sustain this increasing growth.
The central and state governments are also adopting changes. They're liberalizing labor and environmental regulations and adding generous new financial incentives for investment. This improves the outlook for the manufacturing sector, too.
Economic and governmental policies are also being redesigned to attract new foreign investment into the manufacturing, hydrocarbons, insurance, defense, and railways sectors.
Investors in India have seen some steep upside over the past several years, with stock market index returns as high as 81% in 2009, 25% in 2012, and 29% in 2014, since India is actually one of the countries benefiting most from the sharp drop in global oil prices.
Taking all this into consideration, India's inward-oriented growth, huge English-speaking population, and technology-savvy outsourcing firms have made this country of 1 billion the emerging market economy to watch.
The best way to play the accelerated growth in India is to buy shares of one or more of these three ETFs: the iShares MSCI India ETF (BATS: INDA), which has returned 10.55% in the past three years and tracks an index composed of Indian equities; the iShares India 50 ETF (Nasdaq: INDY), which has returned 12.75% over the previous three years and tracks the investment results of an index composed of 50 of the largest Indian equities; or the iShares MSCI India Small-Cap ETF (BATS: SMIN), which has returned 28.89% since 2013 and tracks an index composed of small-capitalization Indian equities.
These ETFs have some of the most profitable track records in their returns compared to their peers. They also all have expense ratios less than 1%, which makes investing in them relatively inexpensive. Their major holdings are in the finance, information technology, and consumer discretionary sectors.
Indonesia is a critically important emerging market for 2017.
The country is essentially an enormous island chain consisting of 17,000 islands and supporting a population of more than a quarter billion. Forecasts indicate that its 17.3 million-strong middle-class households will grow to close to 20 million households by 2030.
This booming middle class is the main driver of demand, which, coupled with the government's five-year plan to invest more than $400 billion in infrastructure, will ensure a 5.5% growth rate in coming years. And although this rate would be fast enough to make Indonesia a member of the prestigious "trillion dollar club" by 2018, the country's true potential is estimated even higher, at 7% per year.
Since it was hit by the 2008 financial crisis, Indonesia has focused on improving its economic profile through cutting down its foreign debt, controlling its spending, and imposing limits on its budget deficit.
In addition, Indonesia's most newly elected president, Joko Widodo, has already managed to cut costly fuel subsidies, and his administration is planning to endorse significant constructive changes for the oil and gas industry, including transforming the Investment Coordinating Board of Indonesia into a centralized permit issuer. The number of oil and gas licenses decrease from 104 to 42 in 2015. This simplification process will help further attract investors to Indonesia.
Savings resulting from these subsidy reductions will help fund ambitious infrastructure development plans.
To profit from the Indonesian move to a leaner economy, grab shares of the VanEck Vectors Indonesia Index ETF (NYSE Arca: IDX), with a return of about 16% since 2009. It seeks to replicate the price and yield performance of the MVIS Indonesia Index (comprising securities of companies that are incorporated in Indonesia or that generate at least 50% of their revenue in Indonesia). Its net expense ratio is really impressive, only 0.58%. And its top 10 holdings include major banks and other big companies such as Unilever Indonesia (IDX: UNVR).
Forget Trump and forget the headlines - Mexico is a Latin American success story. And a major one, at that. And that's not likely to change anytime soon, even with Trump's proposed restrictions on trade policies and agreements.
Its economy grew 2.3% last year - that's vastly more than the United States - and an accelerated growth of 2.8% is expected this year. Inflation forecasts have dropped to 2.2%, the lowest level in 45 years, due to the fall in oil prices and a credible central bank whose mandate is to keep inflation under 3%.
Nearly 80% of Mexico's oil exports head towards the United States, so it has been largely unaffected by China's economic slowdown.
Unemployment is also falling and the country's debt was upgraded last year, mainly because the government passed important economic reforms.
In fact, Mexico started a deep reform process in December 2012, after President Enrique Peña Nieto took office. It implemented many changes to the energy industry, labor market, telecom sector, educational system, and the government's fiscal framework.
And ahead of the 2018 federal elections, the government seems very keen to attract even more foreign investment, which means near future opportunities will arise in the construction and operation of pipelines, highways, ports, and other infrastructure areas.
To take advantage of the expected Mexican growth as it continues to reform itself, buy the iShares Mexico Capped ETF (NYSE Arca: EWW), which has returned about 10% since its inception and tracks the investment results of a broad-based index composed of Mexican equities. It's a broadly diversified fund with holdings in solid industries such as telecommunications, financials, consumer staples, and materials/industrials.
Almost 11% of the portfolio is invested in America Movil (BMV: AMXL), a Mexican holding company that provides telecommunications services including mobile and fixed-line voice services, wireless and fixed data services, Internet access and pay television, sales of equipment, accessories and computers, as well as other related services. It operates in many geographical segments across Central America, the United States, and Europe.
Vietnam has proven its commitment to reforms and has caught up to many of its neighbors in the region.
The economy grew by 6.5% in 2015 and is expected to grow by 6.4% this year. The country's benefiting from its growing workforce, as nearly 60% of its population is under 35 years old. Vietnam's heavy export dependence coupled with its rising domestic demand remain the main drivers of Vietnam's continued growth in the near future.
This formerly closed-off communist country has bumped up development efforts and liberalization in recent years, as the government has been increasing privatization and now controls only 40% of the economy; that is expected to continue decreasing as investments in infrastructure and industry expand.
Vietnam's private sector growth is fueled by its large, growing population and workforce, growing real wages, and stable low prices. Although nearly half of the workforce is employed in agriculture, industrialization and development are speeding up as the country modernizes.
To grab your share of the upcoming profit opportunities in this driven economy, invest in the VanEck Vectors Vietnam ETF (NYSE Arca: VNM). It seeks to track the MVIS Vietnam Index, which comprises securities of companies that are incorporated in Vietnam or that generate at least 50% of their revenue in Vietnam. It has a low expense ratio of 0.67% and holds about 25% of the portfolio in financials, 21% in consumer staples, and about 14% in real estate.
Zambia is one of the fastest-growing economies in the world; it's among a quarter of African countries that grew by more than 7% in 2012. And it's also very rich in minerals. Copper and cobalt are the key commodities produced there.
The country is ranked as the world's seventh largest producer of copper, generating 3.3% of the world's production, and the world's second largest producer of cobalt at 19.7%.
The Zambian copper belt, which is situated between Zambia and the Democratic Republic of Congo, is one of the richest in the world, as it contains the world's highest-grade copper and cobalt deposits. This copper belt remains the focus of mining and development activities.
According to mines minister Christopher Yaluma, Zambia's copper production will double in 2017. Copper output is consistently growing, even as the industry faced tax changes, falling prices and an acute power deficit in 2015. This will put the sub-Saharan country among the top five biggest copper producers globally going forward.
In addition, Zambia's coal industry is viewed as a key growth sector. Coal output is forecasted to experience rapid growth in 2017, increasing by 611% from 2012.
For two decades, Zambia's mining sector has experienced major foreign interest and investment driven mainly by the privatization of state-owned copper mines, a low tax environment, and low political intervention.
Being a landlocked country creates massive opportunities for investment in electricity supplies and transport routes. Over the past five years, Zambia has witnessed more than $8.0 billion of investment and, considering forecasted growth in both copper and coal production, Zambia is set to gain a competitive advantage over other African nations.
The best way to invest in Zambia is through an ETF that has exposure to a broad range of copper mining companies, such as the Global X Copper Miners ETF (NYSE Arca: COPX), with a return of about 19% over the past year.
There's one more thing - a "cherry" on top of all this opportunity that can bring you even more gains when you use it with the recommendations in this report. Grab shares of the iShares MSCI Emerging Markets ETF (NYSE Arca: EEM). This will get you broad exposure to lots of different large- and mid-cap emerging market stocks from all over the world. Like all our recommendations we've looked at today, it's easy to trade and listed on the "Big Board" in New York. It's crushed the markets' performance, too, with an average cumulative return of more than 314%, compared to just 124% for the S&P 500 over the same time period.
As you've just learned, investing in emerging markets gives you a chance to tap into the biggest and fastest growth in the world.
But not all emerging markets are created equal, so selection – picking the markets and funds that pack the most profit potential – is key…
Being selective is also critical when picking stock winners. And that’s where this investing strategy comes in.
Since 2011, it’s delivered 217 double- and triple-digit peak-gain winners. And you can gain access to it for just pennies a day.
To learn how you can get stock recommendations and research that could help you put an extra $125,000 in your pocket delivered straight to your inbox, click here now...
