InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

$1,230 in Instant Income?

$1,230 in Instant Income?Our top income expert recently pulled the wraps off his breakthrough moneymaking technique. And he proved beyond a shadow of a doubt how you can use it to generate instant cash payouts of up to $1,230 (or more). Over and over again. But then he took things a big step further and guaranteed you can make $1 million by following his program. And the second he did, our phones went nuts! Space is limited — get the details here.

 

 

Good Morning, Vietnam: Look to This Awakening “Asian Tiger” For Growth

By John Persinos on June 28, 2017

Okay, class, sit up and pay attention. Which emerging market has racked up the world’s second-fastest growth rate since 1990, modernized its rural economy, and lifted millions of people out of poverty?

Bueller… Bueller… Anyone?

No, not China. Say hello to Vietnam. That’s right, the very same “communist” nation that embroiled the U.S. in a bitter Cold War-era proxy war from 1955 to 1975. Vietnam, once a byword in America for military quagmire and social division, is now a major trading partner with Uncle Sam and the rest of the world.

Rising geopolitical tensions in recent weeks are spooking investors away from Southeast Asia, but remember the old Wall Street adage: be greedy when others are fearful. Below, I explain why Vietnam is an “Asian tiger” that’s about to roar. I also pinpoint the easiest and safest play on the country.

To be sure, Vietnam is at loggerheads right now with China. As I write this, the two ancient antagonists are engaged in yet another round of squabbling over undersea oil drilling rights in the South China Sea.

China last week abruptly left high-level negotiations over territorial disputes in the region. Beijing is miffed that Hanoi is holding fast to an oil exploration tract in the South China Sea. Exacerbating the confrontation are Hanoi’s recent overtures to Chinese rivals the U.S. and Japan.

China claims more than 90% of the South China Sea, but its neighbors beg to differ. Regardless, it’s likely that China and Vietnam will soon overcome these temporary sticking points and resume doing what these two “Marxist” countries like best: making money.

Let’s set the table with the always astute observations of Jim Pearce, chief investment strategist of our flagship publication Personal Finance. Jim also serves as chief of portfolio strategy for Investing Daily. Jim strongly recommends that investors diversify into international holdings:

“If my expectation for a stock market correction later this year comes true, we may see an increase in demand for foreign companies that are less affected by political and economic events in the U.S.”

As erstwhile developing stars such as Brazil and Russia lose their footing, Vietnam is emerging as the Asian continent’s next growth engine. This spectacularly scenic country beckons investors who are wary of overbought equities in developed markets.

Case in point: Vietnam’s VietJet airline recently inked a deal for a firm order of 100 Boeing (NYSE: BA) 737 MAX 200 passenger airliners worth $11.3 billion. Delivery of the Boeing airplanes is slated to run from 2019 until 2023. The Boeing deal marks the biggest commercial aerospace contract in Vietnam’s history.

The fast-growing airline also signed a $3.04 billion deal for engines made by Pratt & Whitney, a unit of United Technologies (NYSE: UTX), for the 30 Airbus (OTC: EADSY) A321 planes that VietJet ordered in 2015. In a volatile global equity market in which investors are skittish, Vietnam offers an overlooked chance for long-term, market-beating growth.

Gucci-clad socialists…

As with China, Vietnam is a mercantile nation that’s only communist in name. With a population of more than 90 million, the country has generated a growth rate of about 7% per person since 1990, the world’s second fastest behind only China.

As Vietnam continues to make infrastructure and industrial investments, it appears to be on course to sustain this growth rate, which puts it in the same league as South Korea and Taiwan.

Vietnam’s economy is nominally socialist but it’s becoming less dependent on a top-down command structure and state-subsidized conglomerates, and more tailored to free market forces. The government encourages economic competition among its 63 provinces, invests heavily in education and training, and launched several initiatives to foster innovation such as technology industrial parks.

At the same time, the government has started to acquire important positions in the United Nations and shown an interest in maintaining geopolitical stability. As China rattles its saber in hotly contested areas such as the South China Sea, the U.S. is focusing less on Europe and paying closer attention to China’s increasingly nervous neighbors in Asia.

The Pentagon’s “Asian pivot” has put once ignored countries such as Vietnam into the spotlight, which entails the economic stimuli of additional foreign aid and weapons purchases. In the final days of his administration, President Obama lifted the U.S. embargo on lethal weapons purchases to Vietnam, opening the door for Boeing and other aerospace/defense behemoths to strike lucrative deals.

The right baskets of stocks…

As foreign firms and tourists flock to Vietnam, now’s the time to get in on the action, before the investment herd catches on.

The purest play is through the VanEck Vectors Vietnam ETF (NYSE: VNM), the only exchange-traded fund exclusively focused on stocks of companies based in Vietnam.

With net assets of $286.42 million, VNM seeks to track the performance of the Market Vectors Vietnam Index. VNM offers exposure to publicly traded companies either based in Vietnam or with annual revenue that stems at least 50% from Vietnam.

The ETF’s portfolio is well diversified among several industry sectors, with the highest weightings in consumer defensive, real estate, financial services, and basic materials.

Several other Asian ETFs have struggled so far this year, but VanEck Vectors Vietnam boasts a year-to-date return of 10.74% and a current yield of 2.23%. The expense ratio is a reasonable 0.67%. As commodity prices rise and global economic expansion remains on track, VNM provides both growth and a hedge against U.S.-based risks.

Got any questions or comments? Send an email to: mailbag@investingdaily.com. Every Monday, I answer reader letters in my Mailbag issue. — John Persinos

Your tour guide for income…

As I’ve just explained, Vietnam is one of the world’s most enticing emerging markets. If you’re looking for other moneymaking opportunities, turn to Jim Fink, chief investment strategist of Options for Income.

Jim has created a proprietary method for generating gains that’s powerful yet simple. Think of Jim’s trading system as a “profit calendar.”

These payouts can range in value from $1,150 to $2,800, but generally average out to $1,692.50. Isn’t that the sort of reliability you could use these days?

Here’s what one loyal follower recently wrote: “Jim’s technique is simply outstanding! I’ve been using it to make steady income for over two years now.”

Click here to get started today.

 

 

 

 

 

 


You might also enjoy…

 

12 Stocks Virtually Guaranteed to Go Up in 2018

You may not believe it, but I have a calendar in my hands right now that tells me the exact date and time when a few stock are practically guaranteed to go up. 

Twelve of them, in fact.

And if you were to invest in them following the simple buy and sell instructions found in this calendar…

You could be making $1,181… $11,814…. and as much as $190,916 more than by using a “buy-and-hold” strategy.

And here’s the best part…

I’m giving away a few copies of this calendar to interested investors (First come, first served).

With this calendar, you could get higher profits with less risk.

Click here to get the full story, and to claim your copy.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.