I’m thinking of a Latin American bank that truly stands apart. Unlike, say, Citigroup or Bank of America, this bank doesn’t offer loans or checking accounts to the general public. It doesn’t receive deposits from the public, either. Instead, it finances trade in Latin America, mainly by funding the sale of commodities and agricultural products to Asia.
One of the best ways to create cash flow right now is through stock dividends—especially through stocks with exposure to the emerging markets. Cash flow is the amount of money your portfolio “pays you” each year. And by buying a diversified basket of dividendpaying stocks, it can be surprisingly stable.
- Start-up Economies: Why Frontier Markets Make Sense
Posted on November 26, 2012 by Chris Hunter
If you want to see real economic growth, get a taxi through Hanoi at rush hour. Every day, millions of residents of the Vietnamese capital weave their way through the city on newly-bought Chinese and Japanese motorbikes and scooters. Twenty years ago, bicycles were the main form of transport.
It’s probably one of the last places most North Americans would think about investing, but the single best investment you make for the next decade could be to buy Africa. There are important reasons why African stocks are set to richly reward buy-and-hold-style investors. But the main reason is simply this: Africa is where the growth is. The continent’s economy has been growing at about 6% over the last decade. And it is expected to match that pace over the next several years.
- Europe in Flames: Where to Find High Yields in This Crisis
Posted on March 27, 2012 by Chris Hunter
Bull markets are all born in extreme pessimism. That means the time to invest is when the ﬂames are licking higher, not after the ﬁre trucks have arrived. And Europe is up in smoke right now…I’m not calling for the bottom in Europe stocks or for an immediate end to the debt crisis there. Plenty more can go wrong. But contrarian investors “run into burning buildings.”
- Pharma Stocks: My “Rock Bottom” European Watch List
Posted on February 21, 2012 by Chris Hunter
Most investors don’t see fear or abject pessimism as powerful investing tools. But that’s exactly what they are. To maximize your proﬁts you must invest at rock bottom.
This kind of “mega trend” may not be winning a lot of attention in the mainstream media. But it is a critical insight for global investors. The “Age of Man” is literally changing the face of the earth. As such, it will have profound implications on every investment decision you make.
First Eagle Overseas Fund seeks long-term growth of capital by investing primarily in equities issued by non-U.S. corporations. The fund’s management’s research-driven approach seeks to minimize risk by focusing on undervalued securities.
Here’s a trend you can take to the bank: as consumers in the U.S. and Europe cut back on spending, the source of growth for companies will shift to consumers in fast-growing overseas markets.
- Huge Upside Potential in This Deeply Unpopular Market
Posted on July 25, 2011 by Chris Hunter
Buy low. It’s a simple concept. But it’s downright difficult to execute.
Here’s something you won’t hear on CNBC… The recent rally in U.S. stocks was the sharpest such surge since 1644, just before the Ming Dynasty collapsed and an outbreak of bubonic plague claimed hundreds of thousands of lives in Europe.
- How You Can Profit from China’s Democratic Revolution
Posted on June 27, 2011 by Chris Hunter
I’ll be blunt. I have no time for Communists. Theoretically, Communism is just plain dumb. But on a practical level, it’s even worse.
A lot of people are worried about the direction of the world right now. Greece looks set to default. China is fending off allegations of securities fraud. And back in the U.S. there are fears of a double-dip recession.
- A Greek Default Could Be Worse Than the Lehman Collapse
Posted on June 18, 2011 by Martin Hutchinson
The 2008 collapse of Lehman Bros ignited a financial meltdown that resulted in widespread bank failures and caused the Dow to lose 18% of its value in just one week.
- Where Most of Your Future Portfolio Gains Will Come From
Posted on June 15, 2011 by Chris Hunter
The trend is up. This may sound odd. After all, a lot of investors are pretty gloomy these days. In America, house prices continue to head south… about 1 in 10 people remain unemployed… and Washington is in disarray over what to do about its spiraling debt problem.
- How to Avoid Taking It On The Chin in the Next Crisis
Posted on June 10, 2011 by Chris Hunter
By investing in emerging markets, you are investing in growth that hasn’t happened yet. Future growth, in other words.
Heat waves… forest fires… mass migration… disruption to the lives of hundreds of millions of people… global conflict… This is the dire warning of professor Lord Stern of the London School of Economics following the news that greenhouse gas emissions increased by a record amount last year.
- Two of My Tips for Successfully Trading Currencies
Posted on May 21, 2011 by Sean Hyman
Back in my late 20s, I had a good friend named Smutri. I met her at the stock brokerage firm where we both worked. Soon after we met, Smutri got engaged and started planning her wedding.
I recently wrote about a new divide that separates the world. On one side of this divide you have countries that rely for their survival on imports of natural resources. On the other you have countries that rake in massive profits from natural resource exports.