Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
|
|
|
|
Latin America's Growth Star Is Bending, but Not
Breaking |
Published:
March 11, 2009
High-Yield International readers probably have noticed my regard for
Brazil's long-term growth potential. Brazil is the class act of the
so-called BRIC emerging markets -- Brazil, Russia, India and China --
that drove more than their share of the world's economic growth over the
past five years, but which are either slowing or slumping now.
Brazil, boasts a combination of abundant natural resources, regional
leadership, middle-class growth potential and smart government that make
it a great bet to benefit during a period when the prices of relatively
scarce natural commodities could rise exponentially.
Since last summer, commodity prices have plunged along with worldwide
demand, in the face of the global recession. That's hurt Brazil's
economy; unemployment is on the rise and corporate earnings estimates
have been lowered. But the nation's GDP remains in positive territory
and is expected to grow +2% to +4% in 2009 (on March 1, the president of
Brazil's central bank predicted +4% growth, pointing out the nation's
US$200 billion surplus of net foreign reserves).
I'm encouraged by the Brazilian government's clear policy of adding
liquidity to the financial system and stimulus to the economy when
necessary. President Luiz Inacio Lula da Silva is boosting spending on
infrastructure projects by +28%, and the government's fiscal strength
should make further spending possible if necessary: Brazil has more than
US$200 billion in foreign reserves.
The Brazilian stock market looks inexpensive today, relative to the
country's short- and long-term growth potential. The Bovespa Index
trades at 8.7 times earnings, well below its three-year average of 11.7
-- and much lower than its high of 17.3. I don't expect the index to
return to that valuation any time soon, given the global economic woes
we're experiencing, but if it moves up to 11.7, the index would gain
+50%.
This is also a good time to buy Brazil's currency, the real, on the
cheap. As investors around the world have fled to U.S. Treasury bills --
considered the safest of havens during a crisis -- they have dumped
foreign currencies to buy our dollar. Further, the commodity-demand
slump has slackened demand for the real.
However, I think the next big move for this currency will be up, late
this year or early next year, as investors move back to Brazil's stock
markets and businesses pick up purchases of Brazilian metals, oil,
timber and agricultural products. In addition, Brazil's government bonds
have above-average yields thanks to the central bank's tight monetary
policy (to clamp down on inflation, it keeps interest rates high). Those
yields also will attract investors when they feel it's safe to come back
into the water.
Long story short: within 12 months, I think U.S. investors in Brazilian
stocks will get a capital-appreciation boost from a rebounding real.
I already hold several Brazilian stocks in the "Reliable Income" and
"Ultra High-Yield" Portfolios; If you would like to know the name of the
stocks, I invite you to join me at
High-Yield
International.
Good Investing!
--Nick Lanyi
Editor
High-Yield International
P.S. I already hold several Brazilian stocks in the Portfolios; If
you would like to know the name of the stocks, I invite you to join me
at
High-Yield International.
|
|
Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
and you don't have to worry about oil prices, automaker bailouts, or
what the Fed is up to -- because every "bad" economic development
actually helps some investment or another.Your investing life can
get a lot simpler -- starting today.
Go here to learn about Amy's simple investing strategy.
|
|
|
