Goodbye China!
Unions accuse China of “stealing” jobs.The media says it makes dangerous products, from toys to drywall. Government officials accuse it of unfair trade.
But now one country has come along to knock China off its perch.
In 2010 this country will pass China as the fastest growing economy in the world. And it doesn’t depend on exports to do it.The growth is coming from within.
In this report, you’ll see why investors in conservative “bread and butter” companies here are making more than investors in China and 13 times more than U.S. investors!
And by reading this report now, you’ll get the “3 Best Shares to Own,” plus Five months of our newest “insider” service on this extraordinary market absolutely FREE.
Dear Friend:
A true boom is taking place 7,300 miles from Wall Street. And the most interesting thing about it is that it’s not due to a credit bubble or “hot money.”
This is real growth.
This economy never bought into the subprime bubble and never fell into recession. Historic, fundamental changes are finally driving its growth… so this is a boom that can last for decades.
Like the US, Europe and Japan after World War II.
Or China for the last 30 years (but without the dependence on exports)…
Since the last major market low in October of 2002, US stocks are up 43%...yet stocks in this country are up by over 482%! And the pace is only accelerating….
In the last year, US stocks are up 59% … while stocks in this country are up 154%! And top performers are up over 400% and 500% in that time.
Yet the next 12 months could see even greater gains as the world starts to take notice.
At the same time, the World Bank now predicts this country will overtake China this year as the fastest growing economy on earth!
And ordinary people are growing rich in the process. For instance, The Economist says this country is“creating millions of entrepreneurs.” Merrill Lynch says it’s creating High Net Worth Households at a faster pace than anywhere else in the world. And Business Week says it’s creating millionaires at a record pace…
“With… a recovery not yet seen elsewhere, the ranks of the rich will swell this year, as will their wealth hoards.” Business Week, October 13, 2009
Let me show you the reasons behind the extraordinary growth. The growth in the economy, the growth in the sales, earnings and share prices of its public companies. And the growth of the “wealth hoards” of so many investors. Then I’ll show you three of the easiest and smartest ways to participate in this extraordinary boom.
What Causes Real Sustainable Growth and the Kind of Booms that Create Stock Market Fortunes
One phenomenon has created more wealth—in people’s everyday lives and in the stock market—than any other. It’s called “economic liberalization.” It’s a mouthful.But it basically describes what happens when a formerly controlled economy moves more towards free-market policies.
When it happened in Chile in the 1980s, the United Nations says it lifted over 1 million people out of poverty. And stocks shot up 1,725% in less than seven years.
In Poland, per-capital GDP has more than doubled since the Soviet Union fell. And when the country began to privatize in 1993, the stock market soared 1,144% in a single year!
According to Stanford economist Robert McKinnon, South Korea’s economic growth nearly tripled after it began to liberalize. Its stock market then soared 1,578% during a blistering 10-year bull market.
In 2002, Eastern Europe went into a 2nd phase of economic reform in preparation for joining the EU. Once again, the economies grew at record levels and the stock markets soared. Hungary’s stock market rose 517%, Poland 556%, and the Czech Republic 1,391%!
Also in 2002, Inacio Lula Da Silva was elected president of Brazil. He immediately began to liberalize key aspects of the economy. The stock market went on to rise 130% in one year… and 2,000% over the next seven years!
All these returns are in US dollars, meaning these are the results you would have got if you bought them.
This isn’t just a matter of history either.
These very same events are now unfolding in a country halfway across the world (not China). There, a simple budget announcement at the beginning of this month may serve as the turning point that sends their economy racing (more on that later).
And while the effect on the stock markets has been dramatic, the performance of certain “ordinary” stocks has been even greater.
When “Conservative” Bread and Butter Stocks
Turn into Boom Stocks
In the US we’re familiar with booming stocks. But they usually have to be “revolutionary” stocks. Like Microsoft or Dell when they first came out, which turned each $10,000 invested into millions… or Ebay and Google… or if you went farther back and bought Coca Cola when it first came out or GM at the dawn of the automobile era…
But what’s extraordinary in liberalizing economies is that they still need basic economic development so much that leading bread and butter companies boom. In other words, you don’t need “lottery” type luck to pick the next revolutionary company. Ordinary infrastructure and major industry companies can rise dozens of times in this kind of environment.
Here are just a few examples of “ordinary” companies producing extraordinary returns as the economies liberalized…
For instance, in the Czech Republic electricity usage skyrocketed and shares of energy company CEZ rose 2,355%.... in Brazil demand for steel doubled and shares of steel makers Siderugica and Usiminas climbed 4,175% and 8,075%!
When Korea liberalized, financial services boomed, pushing shares of securities broker Daewoo up 3,816% and insurer Hanwha up 3,869%. In Poland, massive investment in infrastructure boosted leading construction companies Polimex and Zaklad 7,258% and 10,356%!
Now, let me be clear. This doesn’t mean you’ll automatically make thousands of percent. But these examples show how the market can rise strongly under these types of conditions… so that there are realistic opportunities to double, triple and quadruple your money… as well as star players that can return even more without the kind of risk you normally would expect for these kinds of gains.
Why less risk? Because it’s not speculation or hot money driving the boom. It’s something entirely different.
In all these cases, comprehensive economic reform led to rapid economic growth. That caused a long and strong rise in the “bread and butter” stocks. And that creates an extraordinary opportunity even for the “risk averse” investors among us…
How to Create a Million-dollar Portfolio
with Just 3 “Ordinary” Stocks
If you invested $10,000 into any three of these stocks, you would have seen them grow into a portfolio worth more than $1 million. Just $10,000 in Usiminas and Daewoo alone would have grown into over $1.2 million. And $10,000 in Zaklad all by itself would have grown to $1,065,600 in a few short years.
And these aren’t new technology stocks or companies that discovered a miracle drug or new fad. They’re involved in infrastructure and key products and services. These are the kinds of companies that drive the growth of every economy. They’re the locomotives that usually produce slow but steady returns in the US… but in this kind of market can behave like once-in-a-decade boom stocks.
The growth can be so strong, broad and deep in this kind of economy that you don’t have to get “lucky” or pick the absolute best to make a great deal of money. For instance, even if you didn’t invest in these economic engines and you simply got the average market returns, you would have done very well.
A $100,000 portfolio invested in Poland or Hungary, would have grown into over $617,000 while US stocks went nowhere.
With the average return of stocks the Czech Republic, you would have grown your portfolio into nearly $1.5 million.
With Brazil it would have grown into just over $2.1 million.
This is the kind of potential you can find in an emerging market when it adopts serious economic reform and sets a multi-year bull market in motion.
So where is a new wave of economic reform creating the next extraordinary bull market? In a corner of the world you might least expect…
Meet the New Brahman Bull of Stock Markets
Despite a global recession, one major economy is growing 7% this year, after growing at a 9% annual pace for the last four years. That’s about three times the average growth rate of the US and Europe when they’re not in recession!
At the same time, this country’s stocks are obliterating the competition. While Wall Street celebrates a 68% rise for the S&P 500 since last March, this country’s stocks are up 152%! And since many of these companies are listed in New York and London, western investors can easily participate in this new “hyper bull market” if they can only find out about it!
But it’s not front-page news because it’s not happening on Wall Street. It’s happening on Dalal Street, 7,300 miles away. That’s the financial hub for India, the worlds’ 2nd most populous country and now one of the fastest growing economies on earth.
But the most exciting part isn’t just that India is finally beginning to realize her potential. It’s that this time the reforms are likely to go deeper than ever before, improving the lives of hundreds of millions of people… and giving alert investors the chance to make a great deal of money in a relatively short time.
To see why this is happening, take a look at recent events …
344 Million Voters Vote for Prosperity
Since winning independence in 1947, India remained poor because of low levels of literacy, a caste system, a heavy influence of socialism and a corrupt red-tape bureaucracy known as the “license raj.” Slowly things began to improve over time but it wasn’t until 1991 that the economy made its first big advance.
That’s when Manmohan Singh became finance minister. An economist educated at Oxford and Cambridge, he fought to reduce taxes and bureaucracy and free up the private sector. Progress was slow because socialists and communists maintained significant minority influence in the congress. Yet the economy’s growth rate jumped to 6.7%.
“India has been transformed from a license Raj into a land of un-caged entrepreneurs.”
- The Economist 5/12/09 |
In 2004, Singh was elected prime minister, reforms accelerated and the economy jumped to even higher growth—an unprecedented 8.6% a year.
But last May 16th marked the biggest milestone of all…Indian voters re-elected Singh as prime minister and for the first time in history they also gave his Congress party effective control of the legislature!
Indian stocks shot up 17% in one day! And they haven’t looked back. They’re up another 20% since the election.
But this isn’t about a one-year boom…
The World Bank predicts India will overtake China THIS year as the world’s fastest growing economy!
Recently they issued another vote of confidence, with their $4.2 billion funding program for Indian infrastructure. And that’s on top of skyrocketing foreign investment and record sales and profits for Indian companies.
All prices as of March 11, 2010
And in India’s fastest growing industries, the difference is even more dramatic. Look at what’s happening in banking. India’s two leading banks are up 940% and 638% since the last major market botom. By contrast, Citigroup and Bank of America are down 90% and 68%.
In telecom India’s fast growing industry leader is up 254% over the last year. Compare that to sprint, where “cellular” is already a mature industry and shares of Spring fell 54% in the same time.
In information technology, India’s top two companies are up 323% and 407% just since March. But the “old” IT leaders, Oracle and Microsoft, are up just 78% and 96% in the same time.
“BNP Paribas is recommending investors increase their exposure to India at the expense of China.”
- Business Week |
And, by the way, these winning stocks are all shares of Indian companies you can buy through any US brokerage account.
Yet the opportunity ahead of us is even greater than India’s recent performance. That’s because the needs of the country are so great.
Tap into 739,000,000 New Cell Phones
In 2000 India had only 4 million cell phone subscribers. That’s out of a population of over 1 billion people! Talk about under-served! Yet today, there are over 330 million cell phone subscribers in India—more than in the entire US. And by 2015, experts expect a total of 743 million subscribers.
That’s more than a million new subscribers a week for the next six years!
What do you think that’s going to do for the bottom line of the leading cell phone companies?
It’s no wonder that, as India lowers barriers, international firms are pouring over $27 billion foreign direct investment into the country. That’s almost five times the level of just six years ago!
And here’s another remarkable aspect of the Indian growth story. Foreign trade is booming but they are not an export-dependent country. India has strong domestic demand. That’s why it has grown 14% over the last two years even while most of the world sank into recession.
Why the Indian Boom Is
Just Starting
The Indian economic boom is still in its early stages. Per capita wealth
could rise 10-fold and it still wouldn’t be /half /what it is in the US
and Europe. And Indian stocks could rise 10-fold and they wouldn’t be
one-third of the market capitalization of the US and Europe.
Plus, the /need /is still so great for so many basic western goods and
services—from phones, refrigerators and automobiles to healthcare and
education. There is a long way to go for India’s rapid economic growth.
Investors who understand this can make exceptional returns along the way
without taking on exceptional risk. Ashish Advani’s brand new report
*/Million Dollar Stocks: The 3 Best Indian Shares to Own Now!/ / /*will
introduce you to three of these extraordinary “ordinary” stocks. They’re
leaders in “bread and butter” industries and key drivers of the Indian
economy. They’re also experiencing record growth in sales, profits and
the value of their shares. See the end of this letter to claim a free
copy of this report.
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That also means it doesn’t need to worry about having “too strong” a currency like most export-heavy countries do. And that can be very good news for investors in the Indian stock market…
How a Strong Currency Can
More than
Double Your Stock Returns
In recent years “Easy Money” has been the primary policy weapon of central banks around the world. Yet India refuses to crank up the printing presses to drive growth. Here’s how emerging-markets expert Dr. Marc Farber recently put it…
“Central bankers are all in the same boat. They have only one recipe, to print money. The only central bank that is halfway decent… is the Reserve Bank of India. I think it's the best central bank in the world.”
- Dr. Marc Faber on Bloomberg News, September 22, 2009
The Economist put it this way…
“THE Reserve Bank of India (RBI) turned 75 on April 1st. Older than the country itself, the central bank is conservative and unimpressed by fads.”
– The Economist
In short, with a conservative tradition and an economic boom that doesn’t need cheap money; the prospects for the rupee to rise with Indian stocks are excellent.
That’s important because a rising currency and a rising stock market are a powerful combination. For instance, Brazilians saw their stock market rise 606% since October of 2002 and the beginning of reforms in that country. Yet as an American investor you would have made 1,630% in the same stocks!
Why? Because appreciation of the local currency more than doubled the returns of these stocks in dollar terms.
Look at it this way: if you buy something for 10 rupees and it goes to 20, you double your money. But if the value of the rupees also doubles, you quadruple your money! This is true with all the hyper bull markets we’ve seen—from Chile to Korea, Poland, Hungary, and the Czech Republic, to name a few. 
And you don’t need to deal with exchange rates to get this benefit. The effect automatically applies to any Indian stock you buy, quoted in US dollars like any other stock, and bought through your regular US brokerage account as easily as you would buy a share of GE—but likely far more profitable.
Speaking of GE, here’s what the head of that company recently said about India…
“This is an exceptionally good time to invest in India."
— Jeffrey Immelt, CEO of General Electric, 10/3/09
And he’s not alone…
“Other top CEOs like Gates, John Chambers and Carly Fiorina have come to India, but I am deeply committed to the Indian venture.”
– Larry Ellison, CEO of Oracle
The reasons so many major corporations and top global analysts are keen on investing in India are the same reasons you may want to consider doing so yourself….
Investing in India from “the Inside”
My name is Justin Ford. I’m the Executive Editor of The Sovereign Society. I’ve been involved in emerging markets for over 30 years. I was in Chile during the military junta, Eastern Europe before the fall of the Soviet Union, and mainland China in the early stages of reform.
I have returned to these countries throughout the years and I’ve seen firsthand the amazing growth that can happen in the wake of economic reform. I’ve also met successful investors in these countries and I’ve come to appreciate the value of “local” information… the kind of intelligence that separates fact from fiction and that you’re not likely to find in USA Today.
It’s no different in India. If you want an edge, it helps to have someone who understands business, investing and the culture of the country itself. No one I know fits that description more than my colleague Ashish Advani.
Meet Ashish Advani, Your Dalal Street Insider
 Ashish was born in Bombay (He’s “old-school,” he refuses to call it Mumbai). He spent his first 21 years there, getting his education and a degree in accounting.
Since then, over the last 25 years, he has travelled the world in search of adventure and great investments. He has worked as a financial analyst in five countries on four continents, including stints as an adviser to the Minister of Commerce of Oman and corporate treasurer for a Fortune 500 company.
During all this, he somehow found the time to get an MBA in America while traveling frequently to his native country, seeing family, networking with friends and classmates, doing business deals and investing in the stock market as the economy liberalized and share prices climbed and climbed.
As Ashish likes to say, “You can take the Indian out of India… but you can’t take India out of the Indian.” And Ashish is Indian through and through… as well as a highly trained financial professional and successful investor.
So when Ashish has an idea about investing in India, I pay attention because I’ve seen it pay off time and time again. That’s why he was a natural to be the editor of our new investment research service on India, The Dalal Street Insider.
Last year we published our first issues of The Dalal Street Insider. In five short months, Ashish’s leading recommendation is already up 36%. By contrast, US stocks are up by just 11% in that same period. But Ashish expects to hold stocks he recommends at least two years since each has the potential to double and redouble as the economy grows at a phenomenal rate.
And that could make a very positive contribution to your portfolio. To know you own quality stocks not tied to the US economy… free from the constant erosion of the US dollar… where you are invested in the fastest growing economy in the world, without worrying about the “next shoe” falling in the subprime and housing bubble because no such bubbles exist over there.
Speaking of cars, see this beauty?
It's built by India’s largest automobile manufacturer, already the 4th largest carmaker in the world. They're not making “tin cans on wheels” over there. Believe me, there is a lot the mainstream media isn’t telling you yet about this fast growing economy and extraordinary market… |
How much would it have helped in recent years, to have a portion of your portfolio in a market like this, gaining 483% while US stocks gained just 43%? To turn $10,000 into $58,300, while other investments of the same size went almost nowhere? Earning more than enough on a modest part of your portfolio to pay cash for a new automobile (or two)… make a big dent in a college education… or simply sock away more cash for the next compelling investment opportunity?
Get 5 Months Free of The Dalal Street Insider,
Our 100% Satisfaction Guarantee
And Ashish’s New Report with the 3 Best Indian Stocks to Own Now
The regular price of The Dalal Street Insider is $1,395 a year. Given the potential of the market and the research required to “get it right,” I believe this is an excellent value.
But as I mentioned earlier--now is the time...
Last year’s election of Singh as Prime Minister was only the first step. You may recall I said the markets shot up 17% in one day when that happened. But here’s what I didn’t say. The stock market shot up 10% in minutes! Then the regulators shut down the exchanges for the day to keep things from getting too hot. By the end of the day, stocks were up a total of 17%.
Here’s the point. Indians in India knew this was an historic shift. The gains of 154% so far only validates that. But it’s still just the first leg of an amazing race up that this enormous economy has only just begun.
In fact, just earlier this month—on March 1st- India announced their federal budget for the year of 2010. Ashish has inspected it line by line and confirmed: it’s a slam dunk.
It’s proof that Singh is having an impact across the whole span of Indian government. Proof that a new wave of liberalization is well underway. Keen insiders, Indian investors and Multi-National corporations already know what I’m telling you…and they’re already starting to make moves...
So if you take action now, and sign up for a risk-free subscription to The Dalal Street Insider before March 17, 2010, I’ll give you five full months of the service absolutely free.
Instead of the standard $1,395 annual fee, you’ll pay just $399 for your first six months. That includes 25 weekly bulletins from Ashish, a true “insider” with the personal experience and professional training and contacts to identify the best opportunities in the world’s fastest growing economy.
“Thank you again and again for launching the Dalal Street trader…. My wife and I, have traveled extensively for over 30 years, through southern India. We know that India is a many faceted gem. The mass consciousness and the mass thought form is that India will continue transforming into a supreme global business and financial leader. … We have always wanted to invest in India, yet have not had a vehicle before. We look forward to building a strong and healthy portfolio. We are "selectarians" and will evaluate each recommendation with our consciousness.… May Lakshmi shine a light on all your efforts.”
Dr. Jacob Schwartz
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Ashish will tell you which stocks to buy and when (each of which you can trade from your normal US stock brokerage account). He’ll update you on the status of open positions every week. He’ll keep you apprised of the big political and economic developments in the country… the kinds of trends that create fortunes, and he’ll always tell you when to sell stocks in the portfolio as well. After all, it’s not a profit until you can bank it. And the way things are rapidly developing in India, the profit potential could be the best in the world.
At the same time, you’re covered by a 100% Satisfaction Guarantee. You must be fully satisfied with the recommendations and insights Ashish brings you week after week. If for any reason you aren’t happy with the service or the gains you’re seeing, simply cancel in the first 60 days and you’ll receive a full refund.
Also, if you order before the deadline, you can immediately begin to build a potential million-dollar portfolio from just three “ordinary” stocks. These are market leaders in crucial industries, “bread and butter” companies that can behave like soaring Microsoft stock of yesteryear… thanks to a legitimate economic boom and the immense need for so many goods and services that we have long taken for granted in the US.
It’s like owning the most exciting growth stocks in the world without the kind of speculation and risk typically associated with fast growing stocks. The report is called Million Dollar Stocks: The 3 Best Indian Shares to Own Now! You’ll be able to download your copy instantly, once you place your risk-free order.
But that’s not all…
Your Savings Are Guaranteed…Forever
If you try Dalal Street Insider during this special limited-time offer, I also guarantee you’ll never pay a penny more for your subscription than the special price that you get it at today. It will NEVER go up, no matter how long you decide to remain a subscriber. And given the fact that India could continue to grow at its world-leading pace for many years to come (delivering extraordinary profits in the process)… I believe you may be a very satisfied subscriber for many years to come as well.
So, just click here right now and you’ll never pay a penny more for Dalal Street Insider – ever.
The Next Stage of the Boom Is Just Beginning
India will leapfrog China next year as the world’s fastest growing economy. With the economic reforms taking place, foreign investment pouring in, the world’s most responsible central bank in control of monetary policy, a growing middle class of hundreds of millions of consumers and extreme pent-up demand in so many areas … the prospects for India’s economic growth and exceptional stock market performance are very good not just for 2010, but for many years to come.
This is an opportunity to own some of the best stocks in the world’s fastest growing economy. Cash-rich leaders in bread and butter industries that are growing like America’s best companies did a hundred years ago, at the beginning of the 20th century.
And you can do it all while claiming five months Free of the Dalal Street Insider. If there’s room in your portfolio for serious growth opportunities, this is one you will not want to miss.
Sincerely,
Justin Ford, Executive Editor
The Sovereign Society
PS One of the most exciting stocks in the “3 Shares to Own Now Report” is a generic drug manufacturer. If that sounds boring, consider this: On October 23rd. it reported earnings 115% above last year! Even while the rest of the world is in recession! And the future looks even brighter. Not only because of skyrocketing drug costs in the US and Europe (where this company is grabbing market share) but because it recently signed an agreement with a major European company to distribute its new drug for Type II diabetes. This drug could pass FDA Phase III trials in 2010. If it does, instead of doubling your money… you could multiply it ten fold. Type two diabetes is the most common diabetes and affects over 180 million people worldwide. The World Health Organization expects that number to double by 2030. This drug, if approved, can provide affordable treatment to millions. It’s an example of a reliable “bread and butter” stock that is already making money hand over fist. Yet it also has the payoff potential of a gold-plated lottery ticket. For instance, during the decade Pfizer launched Viagra its shares rose over 1,750%. But it’s not an all-or-nothing bet. Because even if the approval doesn’t come in, you’re still sitting on gold with a growing generic drugs manufacturer “eating the lunch” of Big Pharma. But if it does come in, you could literally hit the jackpot!
PS To claim five months of Free service, we must hear from you no later than March 17, 2010.
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