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Larry here with the answers to our 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.
Now, for the final question we 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?
One reader says: “I would prefer to invest in an economy that is stable and has direction from its government.”
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 and I actually recommend 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, we 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:
Date: Thursday, August 13
Time: 12 Noon Eastern Time (9 AM Pacific, 5 PM GMT)
Duration: 1 hour (no commercials or promos)
How: Video streaming online
Topic: Global profit opportunities
Registration: No charge for readers. Click here.
We look forward to seeing you there!
Best wishes,
Larry
* 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.
Related Posts
- A Quick Quiz for You (08/05/09)
{ 10 comments… read them below or add one }
Hi Larry,
First, I want to congratulate you on such a nice blog. I am a regular reader of your columns.
I want to ask you about Indian Sensex. I know you are long term bullish on Indian Stock market. What are your current view on Indian sensex? Barring short term fluctuation, do you have any medium and long term target on the Sensex?
Regards,
Sus.
Larry Edelson Reply:
August 11th, 2009 at 6:03 pm
None at this time, but I am revising them. I am BULLISH.
Hi Larry,
Do you think That target pulling out of there Amazon deal will have a negative affect on our Foundation Alliance position in Amazon ?
Thanks
Ian
Larry Edelson Reply:
August 11th, 2009 at 6:03 pm
Not according to the cycles!
Is there a web address where we can get real time oil prices
Larry Edelson Reply:
August 11th, 2009 at 6:04 pm
Go to http://www.bloomberg.com, then “Market Data” … “Commodities” … and scroll down to “Energy”.
I agree that the U.S has serious debt issues, but China has teriblle water issues. Who knows where the next crisis will take us.
Larry Edelson Reply:
August 11th, 2009 at 6:04 pm
Interesting thought!
Have we all noticed the increase in credit card rates? Up 5 % to 15 % for cards already paid off. That tells me what the credit card sooth sayers think of Obama’s fiscal policy.
Now that Bankers Life and Casuality has yet (five months of yet) to pay anything on mother’s long term care insurance —- leaving mother and me to pay her nusing home bill —-
I am doing some very careful cash flow projecting and, alas, have niot yet allowed for her credit card payments to double (which is what the change in interest rates will do). The non-payment iby the insurance company is, however, also a statement of the insurance company outlook on the Obama fiscal policy.
Creative cash flow ideas are welcome.
Larry Edelson Reply:
August 11th, 2009 at 6:05 pm
I agree. Unfortunately, as an editor, I can’t give personal advice.
Larry,
How will all the money pumped into the banks by the FED get out into the economy and cause inflation if banks are not lending because of fears that they will need the capital to shore up the balance sheet as they start writing down all the trillions in bad loans. I am in commercial real estate and most banks were stilling drinking the Kool Aid just 6 months ago, some thought they were going to get all there money back on development loans. In 30 years of real estate investing I have never seen such a huge mess. This make the S&L look like nothing.
Reed
Larry Edelson Reply:
August 12th, 2009 at 1:51 pm
They will start lending again. But it’s not only money and lending that can cause inflation to tick up — it’s loss of confidence in government that is responsible for the biggest waves up in inflation. And that loss of confidence is just starting.
Hi Larry,
l’m a regular reader of your columns and l would like to thank you for your clarity and openness
Thanks,
John
Larry Edelson Reply:
August 12th, 2009 at 1:52 pm
Thank You!
Hi Larry, Do one of two things; !.Buy 200 acres of super farmland in a quiet mild area ,retire and work it with electric machinery and have windmill power to run it. Fence it to keep all your dumb relatives out. Or move to New zealand or Australia very soon. Vernon.
How do I hedge against the falling dollar”??????
I purchased your monthly newsletter because I wanted to know the name of the stock that you talked about that was mining copper & gold at the same time with a new method. The company pays a dividend,,,,, has no debt and plenty of cash. Since they have sold their copper for the next 2 years at a good price, they are getting gold at the same time..you referred to it as $1.00 an ounce gold…What is the name of the company?
I want to buy some.. Shirley