Markets

The Next Emerging market

An article by Dick Carter Want to get in on the next emerging market? The one where cash rich folks from the Middle East, Far East and all over the globe are sinking their money, it is none other then the good old USA. If your investment time frame is six to twelve months, (if it is shorter you are not an investor but a trader and are doomed I tell you, doomed) then there could be worse places to stick your investment capital now 12/2007 than the good old fashioned NASDAQ or NYSE. Of if you are like us ETF's.

The uptrend on the NASDAQ is still in tact, see our chart, and nobody but nobody likes the US at this point and time. With China over extended, and the other emerging markets except for perhaps Malaysia see, also over heated the US does not look too bad.

Ask yourself this: do you really think things will look as bad a year from now? If nothing else many of the uncertainties about the credit market will have settled down. The housing market will likely have reached a bottom. Politically how couldn't we be optimistic no matter what the outcome? And with worldwide growth slowing the Fed's paranoia about inflation might even have eased somewhat. Things that are positive now, jobs, productivity, and the American work ethic will continue.

The current dip is a buying opportunity; check our portfolio for where we are putting our money. Although we were too early to venture back into regional banking, which is being unfairly punished, and URE a REIT ETF, we will gladly purchase more in the upcoming months should the opportunity present itself. We might have to take profits in basic materials and energy after the next rally.

At this point we feel great about our US based portfolio, there is foreign exposure to be sure, and we just might add EWM, Malaysian ETF to the mix. Although for the most part we prefer international exposure to be through mutual funds. As active portfolio management is greatly enhanced when holding international positions.

Bullish on the US? If you have a timeline that expands beyond the next quarter, there might not be a better buying opportunity than right now.

About the author:
Dick Carter earns a living investing in Exchange Traded Funds. You can read his opinions at http://www.etfsu.com.