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Martin here with the answers to my quick quiz.
If you’re among the many that thought the green line in this chart was the ETF linked to the Chinese stock market, you guessed incorrectly.
It’s actually the Brazil ETF (symbol EWZ), up a whopping 65 percent so far this year.
A possible source of confusion: The Shanghai Stock Index HAS soared a lot more, but the China ETF (FXI), due to its portfolio of steadier, less volatile Chinese stocks, is up “only” 40 percent.*
Meanwhile, nearly everyone guessed correctly that the WORST-performing major stock market is right here in the United States: The Dow Jones Industrial Average was up a meager 3 percent year to date.
Bottom line: For every $10,000 investors have made in the Dow this year, they could have made $133,000 in the China ETF … and $217,000 in the Brazil ETF!
Reason — and this nearly everyone answered correctly — the major economy with the weakest growth is the United States; and the major economy with the strongest growth is China.
Plus, as I’ve stressed in my recent articles, the major economy that’s been among the first to recover from the recent slump is Brazil.
Now, for the final question I asked …
Which would you prefer to invest in?
A country where the market has had the best
performance so far this year? Or one which may be
lagging but can be bought more cheaply?
Doug says: “I would prefer to invest in an economy that is stable and has direction from its government.”
Bill and several others want “the one that will have the best performance next year.”
Still another reader writes that he’d go for “one which may be lagging right now but is underpriced and will shoot to the forefront in the next 12 months.”
All good answers!
Our team of international experts actually recommends a mix of both: Investments in countries that have great momentum and a proven recent track record … PLUS those that may have lagged in recent months but offer better value.
And in our Weiss Global Forum this coming Thursday, they provide specific, actionable recommendations for each.
But you have only a few more days to take advantage of our free registration. Here are the specs:
Title: The Weiss Global Forum
Date: Thursday, August 13
Time: 12 Noon Eastern Time (9 AM Pacific, 5 PM GMT)
How: Video streaming online
Topic: Global profit opportunities
Registration: No charge for readers. Click here.
We look forward to seeing you there!
Best wishes,
Martin
* FXI is comprised of Chinese companies listed on the Hong Kong Stock Exchange that have issued class “H” shares denominated in Hong Kong dollars and available to international investors. The Shanghai Stock Index is comprised of companies listed on the Shanghai Stock Exchange issuing Class “A” or “B” shares, denominated in yuan and traded only by mainland Chinese investors.
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Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Nilus Mattive, Claus Vogt, Ron Rowland, Michael Larson and Bryan Rich. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amy Carlino, Selene Ceballo, Amber Dakar, Dinesh Kalera, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau, Jill Umiker, Leslie Underwood and Michelle Zausnig.
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