Emerging Markets? They've Already Emerged

Source: CNN Money, Paul La Monica (11/11/10)

"The GDP gap is only likely to get wider."

World leaders are in Seoul for a key G-20 meeting, and there are obvious tensions regarding currencies and trade practices that need to be resolved.

But for investors, it's time to stop worrying about the rhetoric and embrace the fact that many emerging market economies are now growing at a much more rapid clip than the United States, Europe and Japan. There really is no denying the clout that China, India, Brazil and many other so-called developing markets now have on the global economic stage.

According to data from ISI Group, the gross domestic product of emerging markets surpassed the GDP of developed nations. The gap is only likely to get wider in the coming years.

"Emerging markets should outpace the developed world in terms of GDP growth, especially now that you have the rise of a wealthier middle class," said Brent Jones, portfolio manager of emerging markets equities with GE Asset Management in Stamford, Conn.

Another major advantage that the emerging markets have is that they simply did not gorge on debt. "Fiscal deficits in emerging markets are roughly half of the developed world," said Cristina Panait, co-manager of the Payden Emerging Markets Bond Fund in Los Angeles. "Also, in terms of the leverage in their banking systems and with consumers, the fundamentals are a lot sounder in Latin America and Asia."

But experts urged investors to be cautious. Not every emerging market is the same, and riskier and smaller emerging markets may actually be more attractive for the long-term.

"It's a case of the haves and have-nots and the emerging markets are the haves right now," Gibley said. "I still like the emerging markets for the long-term but you have to be concerned that low rates in advanced economies is fueling a bubble."

Announcing Streetwise Live! Events
Source: Streetwise Reports (07/13/2020)

Streetwise Reports is offering 100 investors—at no charge—the opportunity to meet via Zoom with executives of precious metals companies as they discuss recent developments at their companies and upcoming catalysts.

"China's export quota could be opportunity for Canadian miners"

Latin America: Six Gold Juniors Amass 100M+ Ounces
Source: Marc Davis, BNW News (05/25/2010)

Latin America, the world's last great mineral frontier for prolific gold discoveries, is proving a godsend for some lucky investors.

Mexico: Gold's Next Powerhouse Player
Source: Marc Davis, BNW News (11/03/2009)

As the world's key gold producing nations struggle mostly in vain to replenish dwindling below-ground supplies, Mexico is bucking the trend in a big way.

Where Have All the Gold Mines Gone?
Source: Brent Cook, Exploration Insights (04/14/2009)

Given the declining global gold production, mining companies’ demand for reserve replacement and the acute dearth of new gold discoveries, there is no doubt that real economic discoveries will be exceptionally valuable. . .the opportunity for stellar profits is the best it has probably ever been. Identifying the few successes, however, will require vigilant and constant technical assessment of geology and drill results, always with an eye to mine economics.

Congo Completes Mining Review, Says Majors Quit Talks
Source: Reuters (12/20/2008)

"Review process is extended an additional 45 days to allow six companies to return to the negotiating table for direct talks with government ministers."

I haven’t spoken to my old mining stock friend, noted and universally respected gold stock guru, Bob Bishop, about Rare Element in a year, but I hear he is still a supporter and very large shareholder. I don’t believe he will hold it against me to remind you that this was one of his favorite holdings when he left the newsletter writing business. . .

It's Only the Beginning for Uranium
Source: www.financialinsights.com (06/03/2005)

Dr. Richard S. Appel, author of Financial Insights, first became bullish on uranium in mid-2003, when it appeared obvious that its supply versus demand equation was fated to seriously drive higher its price. Since then, a series of events in the uranium industry has led Appel to believe that uranium prices will reach never before seen levels.

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