How to Make 1,000% Profits with Asia ETFs
by Chris Rowe 12/03/08According to the National Bureau of Economic Research (NBER) and its Business Cycle Dating Committee, the United States entered recession almost a year ago in December 2007.
We've been saying that we were in a recession for the last 10 months or so. Are we smart, or what?!? Or maybe we're just not in denial about the reality of the economy.
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Typically, by the time these guys announce that the U.S. has been in a recession, the market has already bounced off of its lows by 15%-25%. But this market has been anything but typical. However, the announcement that we now recognize we've been in a recession for a year is actually more encouraging to me that we are closer to a bottom.
So what should you be doing here?
Ten out of the last 11 trades I recommended at The Trend Rider have been bearish trades (profiting from downside moves) as we mainly focus on ways to profit from the "intermediate term" (weeks to months). Needless to say, I've been jumping for joy lately as the market has been crushed.
Still, we have to remember that while it makes plenty of sense to profit from downside moves in this market, we are looking at historically low valuations. (That doesn't mean they can't go much, much lower. But in 10 years we will likely look back at 2008 - 2009 as the best buying opportunities we've ever seen.)
Great Opportunities Still Coming from China
For the last several weeks, I've been talking about ways to get rich in one of the most volatile of global markets: China. I've given some of the best "very long-term" investments that a person can make, and I've done so at the risk that comes with writing to a crowd that considers "long-term" the next few weeks: The risk that my "very long-term" view will look incredibly foolish in the coming months if they trade much lower.
So each time I write about these future monsters, I preface by explaining that these are stocks that you want to hold for at least a decade, and possibly longer. I think you can make several thousand percentage points over the "very long-term."
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I've read many e-mails explaining how difficult it has been to buy individual stocks, even with a very long-term view. So today, I'll give you two Asian ETFs that you can buy that will also benefit enormously from the Asian economic boom. Since the ETFs represent a weighted average of a large number of stocks, perhaps you'll feel more comfortable due to the reduction of risk provided by diversification.
The other concern I've heard is one about governmental corruption and questionable accounting methods. So the ideas you're about to hear will address those concerns as well.
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Michael Shulman
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