EEN GRATIS TIP…
1 oktober, 2009 | door MHAAGEN |…vanwege StreetAuthority. Het gaat om een markt die nog hotter is dan China, een eiland, namelijk het piepkleine Taiwan. De mogelijkheid om meer dan 30 % te verdienen met weinig risico.
Think China is the hottest growth opportunity in today’s market?
Think again.
In today’s issue I’ll introduce you to a tiny island nation that has outperformed the booming Chinese stock market by a nearly 2-to-1 margin in the past three months. I’ll also give you the name of an exchange-traded fund (ETF) that is nicely positioned to capitalize on this growing market. Although it’s already up nearly +30% in recent months, my proprietary data systems are telling me this fund could jump +33.6% from today’s levels.
I’m talking, of course, about Taiwan.
This small nation is located just off of mainland China. It boasts a developed economy with gross domestic product (GDP) per capita of more than $30,000 — almost six times China’s $5,300. And thanks in large part to a strong export market, Taiwan has seen extraordinary economic growth during the past several decades.
In years past, the majority of Taiwan’s exports were destined for the U.S. But thanks to booming growth in neighboring China, Taiwan’s exports to China have surged nearly five-fold in recent years. And as China’s economy has continued to grow, Taiwan (and, by extension, Taiwanese stocks) has delivered impressive gains for investors.
Best of all, U.S. investors can gain access to this faraway market without leaving the comfort of home. Today’s “Trade of the Week” can be bought on the major U.S. exchanges just like a regular common stock, and it offers the advantage of broad, diversified exposure to Taiwanese shares.
The iShares MSCI Taiwan Index Fund (NYSE: EWT, $12.18) just flashed a “Strong Buy” rating based on my proprietary software system.
Here are a few of the reasons why EWT looks like a “Strong Buy” right now…
For the foreseeable future, non-domestic stocks could outperform U.S. stocks, if for no other reason than the massive burden of debt being accumulated by the U.S. and the resulting impact that has on the U.S. dollar. Weakness in the U.S. dollar tends to strengthen all other currencies and associated stocks of foreign countries. With this as a backdrop, Taiwanese stocks should continue to handily outperform the U.S. market.
EWT is up a lot this year, but it could go much higher. Trading around $12 per share, this ETF may not hit an upper resistance level until it gets to $16. That’s a potential net gain of nearly +35%.
I like the fact that the entire Taiwanese market has been moving higher for months. This ‘rising-tide-lifts-all-boats’ scenario is certainly good for EWT, which has exposure to a broad spectrum of industries in Taiwan.
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Action to Take: Based on the analysis above, I believe EWT is a good trade to put on now with the following trading parameters:
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