Emerging Markets Back on The Way Up...

After a few wobbles the US S&P is back within touching distance of another record high.

US consumer confidence is on the up.

The housing market is ticking along nicely.

And just in case anyone thought the US Federal Reserve was about to stop printing money, the GDP number was the worst it had been since 2009.

There’s nowhere for interest rates to go except down or stay where they are.

The US economy is a big story. It will drive US markets, and it will have an impact on the Aussie market too.

But you shouldn’t for a minute think that the US is where you’ll snag the biggest returns in the years ahead. For that you have to look in a different direction…

A big part of investing involves trying to anticipate a trend.

If you can identify a trend and get on board early, you stand a great chance of grabbing a bumper return.

The key is to find the trend in the first place. Sometimes that’s easy. Sometimes it’s not so easy.

And sometimes it’s a big trend, while other times it’s a small trend.

We like the big trends.

The Biggest Trend in 124 Years

We’ll give you an example of a big trend that’s approaching the market now. In fact, this trend is so big we’ve pegged it to be the biggest investment trend in at least 124 years.

But let’s look at an example of a smaller trend. These can be profitable too.

For example, in 2012 when most folks worried about the latest central bank meddling, and they feared inflation and interest rates were about to soar, we took another view.

We realised that interest rates weren’t about to move anywhere. In fact, we bet that interest rates would stay low for the foreseeable future (by that, we now mean 30-plus years).

How could investors profit from that trend? The solution was simple. We began to recommend investors put more into dividend stocks. To be fair, we’ve been a fan of dividend stocks for a long time. But at that point we realised it made sense for investors to up the ante.

The gamble paid off. Dividend stocks began to take off from the end of 2012 into 2013. Our focus was on small-cap stocks, but even the big dividend payers clocked up big returns.

Why was that? It was because by this stage investors started to worry that interest rates would fall and that the return on bank and term deposits would also fall. In that instance it made sense to buy dividend stocks.

That was a good stock trend. But it wasn’t a huge stock trend. Investors made good money from it. But it wasn’t life-changing money, because the trend wasn’t big enough.

It’s great to invest in those trends, but if you want to make the real life-changing money, that’s when you need to look for the big trends…the megatrends.

This isn’t history, it’s now

One of the things that has amazed us this year is how quickly investors and the market in general are to write off one of the biggest investment megatrends facing the market today.

We’re talking about the continued rise of China and other emerging markets — especially in Southeast Asia.

If you listen to most market experts they seem to believe that the China ‘megatrend’ is part of history. They seem to think that it lasted from 2000 to 2007 and that now it’s over…that it’s time to focus back on the US and Europe for growth.

We won’t say what we want to say about that, because we’re not sure it will get past the censors. But let’s just say this: It’s rubbish.

Anyone who thinks China and emerging markets have already had their day in the sun needs their head examined. As we see it, China in particular has barely started its economic boom.

We’re not just saying that, we’ve got the numbers to back it up. It’s why for the past few months we’ve spent a lot of time thinking of a way to share that information with you.

And we think we’ve done it. We’re putting the final touches on the details this morning. But by this weekend we hope to have launched a free investment series that we’re calling the Megatrend Master Series.

In effect it will be a week long crash course (don’t worry, no study required) on the ins and outs of investing in megatrends and exactly how we see the next megatrend forming.

We’re sure you’ll enjoy it. Look out for a special invitation (fingers crossed) to the Master Series in your inbox this afternoon. It costs nothing to register.

Join the Master Series

We won’t give away the full details of this megatrend. The Master Series will reveal all that.

But what we can say is that based on the projections of emerging markets analyst Ken Wangdong, China’s economy — get this — will be four times the size in 2048 than it is today.

No one can tell us that isn’t a megatrend.

This isn’t conjecture. It’s analysis based on comparable historic events, and the natural cause of urbanisation and economic development.

Anyway, it’s an exciting time and investors really do need to be a part of this megatrend. To find out how you can be a part of it, check your email this afternoon and register for free for the Megatrend Master Series.

Cheers,
Kris+

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