A Little-Known Way to Profit from Asia’s Growth

May 22nd, 2014
in contributors

Investing Daily Article of the Week

by David Dittman, Australian Edge

If you aren’t investing beyond America’s borders, you’re missing out on some spectacular opportunities.

Take Asia, for example.

Home to 4.2 billion people — 60% of the world’s population — Asia generates $18.5 trillion a year and keeps its workforce busy with a low 3.8% unemployment rate.

Follow up:

Last year, Asia’s overall GDP grew 7.9%, compared to just 3.6% for the U.S.

Now consider this: Today, Asia has as many millionaires as the U.S. — and it’s cranking out new ones much more quickly.

Why Ignoring Asia Is No Longer an Option

With numbers like these, I’m sure you can see why I firmly believe that savvy investors can no longer afford to stay away from Asia.

But don’t just take my word for it. Ask Warren Buffett.

In 2008, Buffett made a 500% gain by investing in BYD Company (SEHK: 1211), an electric car factory in China. He made over $1 billion in less than a year — one of his biggest short-term gains to date. Buffett continues to invest in this and other China-based holdings.

But the Asian growth story is so much more than just China.

  • Japan has been posting attractive numbers lately. In 2013, the Nikkei 225 index rose over 60%—the biggest gain of any major stock market in the world.
  • South Korea is home to what’s known as the “Miracle on the Han River,” which refers to the country’s unprecedented growth after the Korean War. Its economy surged from $30 billion in GDP in 1960 to a whopping $1.1 trillion in 2012.
    Other Asian countries are following right behind, like India, Hong Kong and Singapore.

The bottom line? It’s time to acknowledge the fact that all smart investors need to get a foot in the door of the Asian economy. The next 20 years will be a period of historic growth, with significant gains in exports and GDP, while the U.S. faces a slower and slower recovery.

Still, investing directly in Asian countries can be complicated. Breaking news is often unavailable in English, currencies can be volatile and foreign capital gains taxes can be confusing.

But I have great news for you: there’s an easy solution to these complications.

A Direct Route to Asia’s Best Investments

I’ve discovered a place where U.S. investors can tap into the incredible profits of the Pan-Asian Pacific without having to learn another language or exchange strange-sounding currencies.

It’s a place with steady growth, a solid economy and unique access to Asia. It’s English-speaking, but it’s a long way from the U.S.

So where am I talking about?

Here are some hints:

  • This country’s stocks are considered the world’s most profitable. Its stock exchange has remained strong for 110 years. Its equity market is the eighth-largest in the world.
  • The World Economic Forum says this country has the fifth-safest banking system in the world (the U.S. is #80).
  • This country has become the world’s largest coal exporter. It’s also a major exporter of oil and liquefied natural gas (LNG), as well as minerals, precious metals and uranium.

Best of all, it’s a country that gives you all the riches of Asia but is stable enough to guarantee the safety of your money.

This country is Australia.

Investment Play on Asian Development”

You don’t hear much about it in the U.S., but Australia is hands-down your best investment play on Asian development.

The country’s gifts are almost too many to count, but it all boils down to this: it’s sitting in Asia’s backyard; it’s well established; and it’s not subject to the ups and downs most Asian countries experience.

What’s more, it cranks out a bounty of natural resources, crops and other goods — from wine and spirits to the latest electronic gadgets—that its ever-wealthier neighbors are falling all over themselves to buy.

Take coal.

Despite big investments in nuclear power, China still burns more coal than anywhere else in the world — and demand is growing. According to research firm Wood Mackenzie, Chinese coal use will rise from 1.5 billion metric tons a year today to nearly 2.1 billion by 2030. In comparison, the U.S., the world’s second-largest coal market, consumes only 1 billion metric tons a year.

And China is buying its coal from Australia.

Meanwhile, Japan has always relied on imports for its energy. It has next to none of its own, and it’s willing to pay a premium for a steady stream of coal, LNG and oil. The Fukushima nuclear disaster has made it a matter of national urgency.

Japan is the world’s largest LNG consumer, and it buys 37% of global supplies. It’s also the world’s second-largest coal importer.

Japan’s trillion-yen orders are paid to Australia.

It’s no wonder that Australian Prime Minister Tony Abbott calls Japan their “closest friend.”

But that’s not all.

Australia just inked a new free trade agreement with South Korea in December. According to government figures, the deal’s effect is so great that Australian exports to South Korea will jump 73% in the next 15 years.

This breakthrough comes on the heels of similar deals with Hong Kong just a few months ago—and others are expected with China and Japan in the next 10 months.

Your One-Click Strategy for Big Aussie Gains

These deals are precisely why I’m writing you today: to give you a chance to get in prime position now, before they kick in and send a select group of Australian stocks soaring.

The best news? I’ve put together a brand new special report that helps you do just that.

This one-of-a-kind report reveals 6 stocks with direct exposure to 3 rising Asian countries: China, Japan and South Korea. It gives you everything you need to know about these 6 exciting picks: names, stock symbols, a complete breakdown of their operations and more.

Best of all, it’s yours free just for taking a no-risk, no-hassle trial to my Australian Edge advisory. This special deal gives you our complete service for 3 full months. You get monthly issues; two portfolios (one conservative and one aggressive) packed with my very best Aussie picks; access to our members-only website; and much more.

But you have to act fast. Due to the time-sensitive opportunities in this report, we’re only keeping this offer open for a limited time.

Click here to grab your copy and start your trial now.

Editor’s note: Here’s what David’s readers are saying about Australian Edge:

“I’m a subscriber forever… and for good reason. You saved me from a three-year crash!”
—R. Edwards, Durango, CO

Aussie Edge gives me more (and often better) information than I’ve had from brokers in New Zealand and Australia.”
—R. Miller, Evanston, IL

“Just the right level of information for investors trying to practice conservative investing principles and make the most of it.”
—A. Brillhart, Sarasota, FL

Discover what these—and many more—investors already know about the profits waiting to be made in the Land Down Under. We can’t wait to help you get started. Take the first step by clicking here now.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

 navigate econintersect.com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved