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Tuesday, February 21, 2017
In 1993, I learned two of the most powerful investing lessons of my life...
I was primarily trading emerging market stocks at the time. The big story was China.
I was a broker specializing in foreign stocks, and my phone was ringing nonstop. Everyone wanted to buy Hong Kong stocks.
That was a thrilling time for me... I had never made so much money before in such a short period in my life!
I learned two lifelong lessons then... And today, we have a new opportunity to put those lessons to work.
Let me explain...
The first lesson I learned was this: When emerging markets are hot, you simply HAVE to be on board.
In 1993, I made more money – in less time – than I ever had before.
The main Hong Kong stock index went up 30% that December alone. That was the entire index – not just one stock! And many individual stocks did much better.
But then times changed. Quickly.
The Hang Seng Index – the one that had boomed in December – crashed in the first quarter of 1994. It was awful... I was demoralized and depressed. My monthly income fell by 90%.
And that's when I learned the second lesson...
Legendary investor Jim Rogers was right. As he once said, "Markets often rise higher than you think is possible, and fall lower than you can possibly imagine."
In the good times, the Hang Seng Index rose 30% in one month... And in the bad times, my income crashed by 90%.
Let's fast-forward to today. Emerging market stocks have been in "the bad times" for the last seven years. While U.S. stocks soared, emerging market stocks delivered essentially no returns to investors – at all.
But based on the computers behind my high-priced True Wealth Systems service, that looks like it's changing – right now...
The iShares MSCI Emerging Markets Fund (EEM) – which tracks emerging markets as a whole – has gone straight up to start the year. It's up nearly 10% since 2017 began.
And my systems say this could be the start of a bull market... one that could turn a small $10,000 investment into $50,000 or more.
I know that sounds outrageous. But a major, multi-year boom in emerging markets is one of the few legitimate ways to make hundreds of percent on your money. Take a look...
This chart shows three major booms in emerging markets. Each time, the bull market resulted in triple-digit gains... 471%, 432%, and 141%.
And remember, this is emerging markets as a whole. Specific investments can rally much further during these booms.
You can see on the chart above that emerging markets have done nothing for years... But that has changed to start 2017. We have the start of an uptrend. And that means the next major emerging markets boom could be underway now.
So now is the time to combine the two lessons I learned in 1993 and 1994 – and put them to work for huge profits...
Markets often rise higher than you think is possible, and fall lower than you can possibly imagine.
And when emerging markets are hot, you simply HAVE to be on board.
We have seen the downside over the last seven years. Now it's time to own emerging markets again.
P.S. I recently told readers my favorite way to own emerging markets in the latest issue of my True Wealth Systems newsletter. The last time we saw emerging markets boom, this investment soared 745% in just a few years... And I believe we could be at the start of a similar boom today. To learn more about True Wealth Systems and accessing my latest recommendation, click here.
"This bull market is strong," Steve writes. "I'm talking about a major uptrend in Chinese blue-chip stocks." Some of these companies are among the world's 20 largest businesses... But they're incredibly cheap today. Learn more here.
NEW HIGHS OF NOTE LAST WEEK
Berkshire Hathaway (BRK-B)... Warren Buffett's holding company
Bank of America (BAC)... banks
JPMorgan Chase (JPM)... banks
Goldman Sachs (GS)... financial services
Morgan Stanley (MS)... financial services
American Express (AXP)... credit cards
Visa (V)... credit cards
Boeing (BA)... airplanes
Southwest Airlines (LUV)... airline
Wyndham Worldwide (WYN)... hotels and resorts
Priceline (PCLN)... online travel
Sirius XM (SIRI)... satellite radio
Netflix (NFLX)... home entertainment
Home Depot (HD)... home improvement
3M (MMM)... manufacturing
Honeywell (HON)... manufacturing
General Dynamics (GD)... "offense" contractor
U.S. Steel (X)... steel
Corning (GLW)... hi-tech glass
Apple (AAPL)... consumer electronics
IBM (IBM)... technology
eBay (EBAY)... online auctions
C.H. Robinson Worldwide (CHRW)... shipping technology
Merck & Co. (MRK)... pharmaceuticals
AmerisourceBergen (ABC)... pharmaceuticals
Quest Diagnostics (DGX)... medical testing
UnitedHealth (UNH)... health insurance
Dunkin' Brands (DNKN)... coffee and donuts
Kraft Heinz (KHC)... processed foods
Procter & Gamble (PG)... consumer goods
NEW LOWS OF NOTE LAST WEEK
Not many... It's a bull market, you know!