Don’t Call Them Emerging Markets …

You may have read Ken Wangdong’s take on investing in emerging markets in Money Morning over the last few months.

If you haven’t, you can check out some of his idea’s here and here.

One thing you’ll notice is that Ken doesn’t call these countries emerging markets. As far as he’s concerned, they’ve already emerged.

It’s just that their economies behave like emerging markets because of the drive for urbanisation.

After all, China is the second largest economy in the world. Brazil has the sixth largest economy.

And Australia, we’ll, we’re the 12th largest.

Do you see what Ken means? How can the world’s second and sixth biggest economies be emerging?

This simple data is what drove Kris’ latest idea.  Many months ago Kris Sayce had the crazy idea that the growth in the BRICs market — Brazil Russia, China, India — wasn’t over.

In fact, his view was that the growth had barely begun, despite the size of those economies.

For that reason he’s keen to help investors capitalise on what he says could be some of the biggest stock gains investors have seen in more than 100 years.

However, the deeper Kris dug on these markets, the more he realised he just didn’t have the expertise to find these opportunities. How could he know the ins and outs of countries like China, especially without ever living there? There was just too much about these economies he didn’t understand.

So he went on a talent hunt, and found Ken.

Ken has lived and worked in China. He understands how and why Eastern economies are different to Western economies. He understands the complexities of China that most mainstream Western analysts don’t.

Those on the outside don’t understand how the cultural and political influences drive the Chinese economy. Ken does.

In the past few months, Ken and Kris have worked on a project with a sole purpose — helping Aussie investors profit from what he calls an investment ‘megatrend’.

But first, why would you bother investing directly in emerging markets?

After all, isn’t that what managed funds and ETFs are for?

You see, most mainstream analysts recommend exposure to one or more of the BRICS through an exchange-traded fund (ETF). However, what they don’t tell you is that ETFs generally only include the biggest multinational blue chip companies.

In addition, these same analysts will always tell you that investing is a long-term game. You know an investment for many years.

However, because of their diversification these ETFs don’t always yield great results.

My point is you end up paying a lot in fees for the same information as everyone else. And in many cases you just get single digit growth.

The alternative is to select individual stocks. That way you can pick whether you want blue-chips, small-caps, or a combination of the two. Both Ken and Kris say this is the best way to capture the rising affluence of these BRIC countries.

And by investing in a broader range of stocks, it means you have the potential to achieve much bigger gains.

But why is now the time to buy into these stocks?

Kris says the market is heading into what he calls a ‘megatrend’. He sees a seismic shift coming in the global economy. It will be a profound change that will alter society and the world economy.

This megatrend will see the world shifting from the American century to the Frontier century. No, not just a China century, as many commentators have called it.

However, to profit from this, it helps to have someone who understands the dynamics of these countries.

That’s why Kris hired Ken.

This is set to be a big story and a huge investment trend. It’s something that no Aussie investor should miss. Look out for more details on this soon.

Shae Smith+
Editor, Money Weekend


Since starting out in the financial markets over a decade ago, Shae has extensive experience across various aspects of the industry. Shae cut her teeth in the derivatives industry, teaching clients basic trading techniques with technical analysis.

Joining Port Phillip Publishing eight years ago, Shae has worked across a number of publications, such as Australian Small-Cap Investigator, Gold Stock Trader and Microcap Trader. She’s spent the past two years however, honing her macro analysis skills alongside Jim Rickards, showing Australians how to invest and profit form global macro trends.

Drawing on her extensive experience, Shae is a contributor to Money Morning, and lead editor of sister-publication Markets & Money, where she looks at broad macro trends developing around the world, combining them with her distaste for central banks and irrational love of all things bullion.


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