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Emerging-market stocks climbed for a ninth day, the longest winning streak in four years, as an increase in China's foreign direct investment bolstered confidence in the global economic recovery.
The MSCI Emerging Markets Index advanced 0.2 percent at 11:26 a.m. in New York. The gauge of 22 developing nations pared a gain of as much as 0.9 percent as eastern European equities slumped, led by Russia after shares traded at the most expensive level relative to earnings.
The MSCI index has gained 72 percent this year, touching the highest level in 14 months today, on speculation China will lead the global economy out of its first recession since World War II. The nation's record lending and stimulus spending on roads, railway, homes and power grids has driven a rebound in industrial production and fixed-asset investment and sent property and car sales soaring.
The MSCI Emerging Markets Index advanced 0.2 percent at 11:26 a.m. in New York. The gauge of 22 developing nations pared a gain of as much as 0.9 percent as eastern European equities slumped, led by Russia after shares traded at the most expensive level relative to earnings.
The MSCI index has gained 72 percent this year, touching the highest level in 14 months today, on speculation China will lead the global economy out of its first recession since World War II. The nation's record lending and stimulus spending on roads, railway, homes and power grids has driven a rebound in industrial production and fixed-asset investment and sent property and car sales soaring.
- Bloomberg
Foreclosures are continuing at a rapid-fire pace that may accelerate in 2010, driven by rising unemployment and more adjustable-rate loans resetting to higher monthly payments.
Foreclosure filings were reported on 937,840 properties in the third quarter, an increase of nearly 23% from the third quarter of 2008, according to a report today by RealtyTrac.
One in every 136 U.S. housing units received a foreclosure filing during the quarter, the highest quarterly foreclosure rate since RealtyTrac's reports began in the first quarter of 2005.
Foreclosure filings were reported on 937,840 properties in the third quarter, an increase of nearly 23% from the third quarter of 2008, according to a report today by RealtyTrac.
One in every 136 U.S. housing units received a foreclosure filing during the quarter, the highest quarterly foreclosure rate since RealtyTrac's reports began in the first quarter of 2005.
- USA Today
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The Federal Reserve Is Openly Telling You to Buy Gold and Silver
by Porter Stansberry Thursday, October 15, 2009 The Federal Reserve Is Openly Telling You to Buy Gold and Silver -
What I Learned Inside the Vault
by Dr. Steve Sjuggerud Wednesday, October 14, 2009 What I Learned Inside the Vault -
Two Ways to Profit on a Huge New Currency Trend
by Tom Dyson Tuesday, October 13, 2009 Two Ways to Profit on a Huge New Currency Trend -
What the Man Behind the Most Profitable Short Sale Ever Says Now
by Tom Dyson Monday, October 12, 2009 What the Man Behind the Most Profitable Short Sale Ever Says Now -
America's Huge New Source of Oil
by Matt Badiali Saturday, October 10, 2009 America's Huge New Source of Oil
Money-Compounding Machines in India
By Rahul SaraogiFriday, October 16, 2009
When we look at the Indian markets today, it gives us a tingling feeling at the bottom of our hearts...
We see a market with demographics, demand, entrepreneurship, rule of law, the English language, functioning capital markets, and a culture of minority equity ownership. Above all, we see a market that is giving us the ability to build positions in the compounding machines of the 21st century at prices that are unimaginably cheap.
So quite honestly, we don't think it matters what the Sensex (India's Dow) is going to do over the next week or month or year. We don't think it matters whether the U.S. economy will enter a double dip recession or not. It does not even matter when or by how much central banks will raise interest rates.
We just need to accumulate holdings in these exciting companies – these compounding machines – and sit tight for a very long period of time.
India continues to be considered (with other emerging markets) as a risk play relative to developed markets, going up and down based on risk taking and risk aversion. In order to make sure that our compounding machine is not interrupted by periods like October 2008, we construct our portfolio with stocks of companies that will continue to perform even if the stock markets were to shut down for a period of time.
And in order to make sure that we are not forced to fold our hand, we avoid leverage at all costs.
We seek to find good companies at attractive prices and then just hang on to them. Most of our time is spent avoiding and ignoring the noise and excitement around us. A lot of people know the right thing to do but many of them are carried away by the noise and emotion around them.
We are very fortunate to have excellent partners who share our investment philosophy and have enabled us to implement this compounding machine. We love what we do and to borrow from Warren Buffett again, we "tap dance to work very morning."
Regards,
Rahul Saraogi
Chennai, India
Editor's note: Rahul has the right attitude about his investments: Don't worry about what others think. Just follow the facts and do what's right. It's a hard lesson to learn, and even harder to implement, as your emotions typically overwhelm your rational mind. But you'll end up a lot wealthier if you can manage it.
Last year, Rahul gave DailyWealth an "investment tour" of India. We couldn't believe what we saw... He was buying small-cap stocks that traded for less than their cash in the bank or for less than two year's worth of earnings. Even if those companies have doubled, they're still dirt-cheap.
For more on Rahul and his fund, visit www.atyantcapital.com.
We see a market with demographics, demand, entrepreneurship, rule of law, the English language, functioning capital markets, and a culture of minority equity ownership. Above all, we see a market that is giving us the ability to build positions in the compounding machines of the 21st century at prices that are unimaginably cheap.
So quite honestly, we don't think it matters what the Sensex (India's Dow) is going to do over the next week or month or year. We don't think it matters whether the U.S. economy will enter a double dip recession or not. It does not even matter when or by how much central banks will raise interest rates.
We just need to accumulate holdings in these exciting companies – these compounding machines – and sit tight for a very long period of time.
India continues to be considered (with other emerging markets) as a risk play relative to developed markets, going up and down based on risk taking and risk aversion. In order to make sure that our compounding machine is not interrupted by periods like October 2008, we construct our portfolio with stocks of companies that will continue to perform even if the stock markets were to shut down for a period of time.
And in order to make sure that we are not forced to fold our hand, we avoid leverage at all costs.
We seek to find good companies at attractive prices and then just hang on to them. Most of our time is spent avoiding and ignoring the noise and excitement around us. A lot of people know the right thing to do but many of them are carried away by the noise and emotion around them.
We are very fortunate to have excellent partners who share our investment philosophy and have enabled us to implement this compounding machine. We love what we do and to borrow from Warren Buffett again, we "tap dance to work very morning."
Regards,
Rahul Saraogi
Chennai, India
Editor's note: Rahul has the right attitude about his investments: Don't worry about what others think. Just follow the facts and do what's right. It's a hard lesson to learn, and even harder to implement, as your emotions typically overwhelm your rational mind. But you'll end up a lot wealthier if you can manage it.
Last year, Rahul gave DailyWealth an "investment tour" of India. We couldn't believe what we saw... He was buying small-cap stocks that traded for less than their cash in the bank or for less than two year's worth of earnings. Even if those companies have doubled, they're still dirt-cheap.
For more on Rahul and his fund, visit www.atyantcapital.com.
A COMMODITY AND ITS BREAKOUT
After four months of chopping sideways, crude oil is enjoying what traders call a "breakout."
Breakouts are one of the pillars of common-sense chart analysis. A breakout is simply when an asset makes a new high for a given time period. It can be a short period, like two weeks... or longer period, like six months. The "Turtle Trading" method is famous for making billions of dollars with breakouts (read our friend Michael Covel's site for a lot of great info on the subject).
After watching oil suffer a huge decline in 2008, we noted how the fuel built a "floor" around $38 in February. We then noted its bullish breakout in March... a breakout that resulted in huge gains for many oil stocks. And this week, we must note that oil just broke out to a new yearly high above $75.
We can't know how far this breakout will take oil. It could run to $80... $100... or, as Jim Rogers says, $200 per barrel. But we can note that oil "wants" to go higher right now. We can also brush up on oil-service names, Canadian oil sands producers, and energy-focused denizens of the Canadian Venture Index. A $20 move in oil will result in major gains here.
Breakouts are one of the pillars of common-sense chart analysis. A breakout is simply when an asset makes a new high for a given time period. It can be a short period, like two weeks... or longer period, like six months. The "Turtle Trading" method is famous for making billions of dollars with breakouts (read our friend Michael Covel's site for a lot of great info on the subject).
After watching oil suffer a huge decline in 2008, we noted how the fuel built a "floor" around $38 in February. We then noted its bullish breakout in March... a breakout that resulted in huge gains for many oil stocks. And this week, we must note that oil just broke out to a new yearly high above $75.
We can't know how far this breakout will take oil. It could run to $80... $100... or, as Jim Rogers says, $200 per barrel. But we can note that oil "wants" to go higher right now. We can also brush up on oil-service names, Canadian oil sands producers, and energy-focused denizens of the Canadian Venture Index. A $20 move in oil will result in major gains here.