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At an ETF summit last month, global-investing guru and noted commentator Jim Rogers reiterated his long-running mantra that Asia – and particularly China – will be the No. 1 place for investors to make money in the decades to come.
We couldn't agree more.
Since we launched Private Briefing back in 2011, our experts have been on a continual lookout for Asia-themed profit plays – waiting for them to fall out of favor before making the actual recommendations. The goal with that approach was to maximize the potential upside while minimizing the possible downside.
And it's starting to pay off. For instance:
- Back on March 5, after the World Bank warned that China was a "ticking time bomb," Chief Investment Strategist Keith Fitz-Gerald told us to ignore the hyperbole and invest in the Morgan Stanley China "A" Shares Fund (NYSE: CAF). The fund is up 19.6% since he recommended it, including 12% since the first of the year.
- Last April 12 – as the bearish view of Asia continued to increase – Permanent Wealth Investor Editor Martin Hutchinson and I told you to invest in Vietnam. The investment vehicle we recommended – the Market Vectors Vietnam Fund (NYSE: VNM) – just started its surge, but it's up more than 10%.
- And last Feb. 3, after Keith's analysis showed that the Japanese yen was in deep trouble, he recommended that you invest in the ProShares UltraShort Yen ETF (NYSE: YCS). That fund is up 45%, and he's says this is just the start.
If you missed any of these, don't worry – this is just the beginning, Keith said.
"The reality is … as the old saying goes … you ain't seen nothing yet," he said. "The economic balance of power has clearly shifted to Asia. We're seeing a massive movement of capital to that part of the world. And that movement of capital is accompanied by an increase in influence – economic and political."
Money Map Press brings you a real-world perspective on this important trend. Keith has 20 years' of experience with that part of the world. He worked for a Japanese company, is the author of a best-selling book on global investing and spends part of each year living with his family in Asia. And since joining us here at Money Map Press, he's conducted several investment trips to Mainland China to scout out new investment opportunities and to maintain his vast network of contacts there.
I also did a stint in China and Japan on assignment for Gannett Newspapers back when China's growth boom was really just getting started. And Martin is a former global merchant banker who's guided the economic makeovers of entire countries.
"Many U.S. investors aren't happy about China's emergence, and many actually fear it," Keith said. "That's perfectly understandable, for it represents a massive change. But the view you really need to adopt is one of opportunity. Let go of the baggage of the past … this is all about the future."
Rogers, a longtime China bull, recently reiterated his view to a journalist, stating that "in my view, China is going to be the most important country in the 21st century."
The iconic investor first made a name for himself with The Quantum Fund, a hedge fund that's often described as the first real global investment fund, which he and partner George Soros founded in 1970. Over the next decade, Quantum gained 4,200%, while the Standard & Poor's 500 Index climbed about 50%.
It was after Rogers "retired" in 1980 that the investing masses got to see him in action. Rogers traveled the world (several times), and penned such bestsellers as "Investment Biker" and "Bull in China."
He also made some historic market calls: Rogers predicted China's meteoric growth a good decade before it became apparent and he subsequently foretold of the powerful updraft in global commodities prices that fueled a year-long bull market in the agriculture, energy and mining sectors.
Admittedly, we're fans of Rogers. He penned the forword to my 1998 book "Contrarian Investing: How to Buy and Sell When Others Won't and Make Money Doing It" – an exceptionally kind gesture to make to a hungry young journalist. And Keith has interviewed Rogers several times for Money Morning.
Indeed, one very big spin-off effect of China's continued emergence will certainly be upward pressure on commodity prices. And one way to profit from that powerful trend is by investing in a commodities index that Rogers himself helped create – the ELEMENTS Rogers International Commodity Agricultural ETN (NYSE: RJA).
You can also invest in any, or all, of the three investments that we've recommended here in Private Briefing. Even the yen-shorting trade, despite the already-hefty gain, figures to still have a big payoff, Keith said to me yesterday.
"BP, this is going to be an absolute homerun smash-hit investment," he said. "You don't find those very often … but the tide is just now starting to go out on the yen. And when I say "tide,' I'm talking about a big ebb tide."
He's not exaggerating. In late January, caving into pressure from Prime Minister Shinzo Abe, the Bank of Japan (BOJ) agreed to double its target inflation rate – taking it from 1% to 2%. Several analysts attempted to explain just how massive an initiative this is by stating that it will require an "obscene" amount of stimulus to even get close to that target rate.
And that's going to make Keith's yen forecast come true.
The other prediction – that Asia will emerge as a global financial center – will take longer to come to fruition.
Even Rogers acknowledges that China's ascendance "isn't going to happen overnight or [go] straight up." Just as the United States had many setbacks on its way to the top of the heap in the 20th century, China will experience reversals and problems that will make its advance play out in fits and starts.
But the result will be the same for investors with the confidence to stay the course – massive wealth.
"The fact is, BP, that it is going to be easier for business-people to become millionaires in Asia than anywhere else in the world," Keith said. "This is going to impact every industry, every sector and every asset class on earth. And that means there will be plenty of opportunities for us, as well."
By the way, shares of Molycorp Inc. (NYSE: MCP) rose as much as 8% yesterday (before closing higher by 0.66%) after Michael Gambardella, the noted Molycorp bear with JPMorgan Chase & Co. (NYSE: JPM), boosted his rating on the stock from "Underweight" to "Neutral." The analyst based his move on the rare-earth miner's recent stock-offering-fueled capital infusion. His comment: "While risks remain in the form of even lower rare earth prices and completing Mt. Pass on-time and on-budget and significantly reducing its operating costs … the greatest risk … has now passed." Check out our Feb. 6 piece on insider buying, too.
See you on Monday.
[Editor's Note: We recommend a 25% "trailing stop" on all holdings. And make sure you've seen your new report "The Seven Investments You Have to Make in 2013." It's yours free, and you can access it here.]