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Bull-Market Has Begun in Emerging markets. Do you believe?
Pl see following link.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a8m3CV_oaPE8&r efer=home
The next “bull-market” rally has begun and there are bargains in every emerging market following a record slump in stocks, Templeton Asset Management Ltd.’s Mark Mobius said.
Best Answer
368 points
ads answered 8 months ago …
It is likely that some of the "emerging markets" will recover more quickly than the old markets; however I'd be reluctant to call it a bottom there. But then I don't invest based on where I think the bottom is, but instead focus on researching companies that I feel are strong both financially and from a product/service standpoint and that are greatly undervalued due to the "panic" that has taken over the markets. While things are bad, not all companies that have had their stock priced driven into the ground are in rough shape. Personally I watch for small-caps that have great intrinsic value that is currently priced way lower than they should be (and there are quite a few of those out there), as well as small-caps that have something special about them (ground-breaking technology, new and fantastic way of doing business, breaking new ground in old markets, etc.). After all, the greatest wealth increases have usually been found through small-caps that become big-caps or companies that are greatly under-valued, as in both cases those are the companies that tend to see the biggest gains in value when the market does recover, usually far out-stripping the overall markets.
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4085 points
EthanR answered 8 months ago …
I don't know, it's kind of tough to argue with Mr. Mobius, an extremely successful investor for a very long time. I was looking at a chart of EEM, and it appears that it has put in a triple bottom, which would be extremely bullish, with the first bottom coming, as the article said, at the end of October.
Since the beginning of March, EEM has risen about 20%, which might suggest a new bull market, but it could also be a bear market rally. Right now EEM, like a lot of U.S. stocks, appears to be overextended and due for a pull back. The degree of the pull back, and most importantly, whether or not EEM can rise above the latest peak, will show whether we are looking at a new bull market or not.
Until and unless that happens, I am not ready to declare a new bull.
203 points
Future1investor answered 8 months ago …
There have been solid warnings about the coming bear market for some time now including the book: Bulls Eye Investing by John Mauldin. We also have the knowledge of the former U.S. Comptroller and of course Peter Schiff. Then for the icing on the cake, we heard the Maestro of Wall Street, Mr. Alan Greenspan say that he didn't forsee the growing housing problem. Worse, claiming that He does not understand Credit Default Swaps. (Can you believe what balls it took to proclaim sheer stupidity and ignorance?) Well, don't you believe it! He worked hard to put the blinders on the whole system so that We the People could be plundered on a scale never before seen.
Also there was an errant memo from the super secret Fed which said we would have a four year recession.
Hopefully we've learned from the Japanese, but we're doing a lot now..of what they did, and yet they lost a whole decade in recession. Problem is, we don't learn well because we feel somehow entitled to have the biggest and the best without working for it (credit debt). We have an imbalance consisting of more consumption (expense) than we have production (creation of goods) to sell (income) outside the USA.
Add this to the crimes we have let the Fed 'n friends create, along with the partnering of Wall Street and we've got too big a problem to fix, in the time that everyone is so hopeful for. The debt level is now so high that it has frozen the normal business cycle, so the Fed has resorted to paying it's own boys club, despite the blunders (they went too far in their capital greed) while continuing to put us further in debt.
The Fed and friends are enjoying being free of prison sentences while still getting even more in life-long guarantees of obligation (from the government via the tax-payer), as if the great credit expansion project wasn't enough. But NO. Look for a long bear market shaped by some very deceiving bear rallies.
We write many articles and post videos about it at http://sites.google.com/site/future1investor/
