Buy, Sell, or Hold | Stock Market Video
In this week's Stock Market Video, Cabot China & Emerging Markets Report Editor Paul Goodwin points out that although the market is jumpy, it has rebounded nicely from its three-day swan dive that began on February 21. Still, different stocks have reacted very differently to both the correction and the bounce, and knowing how to interpret the charts can help you make those all-important buy, sell and hold decisions. Stocks discussed include: First Solar (FSLR), Credit Suisse (CS), Ocwen Financial (OCN), Medicines Company (MDCO), Popular (BPOP) and NXP Semiconductors (NXPI).
Double Your Money with Cabot China & Emerging Markets ReportDear Fellow Investor,
When I'm talking to people about investing in emerging market stocks, I'm always aware that I have two choices. The first is to spout statistics:
* About China's 1.3 billion people
* The build-out of Internet access
* The rising power of the Chinese consumer
* The country's decade of double-digit economic growth
* Colossal investment in infrastructure.
There's no doubt that these are impressive factors, and they certainly point to a national economy that's in high gear. But I don't think they tell the whole story.
If a growing economy automatically produced stock market gains, an investor's job would be very simple. You could just buy an ETF for that country and watch the money roll in.
But stock markets are too complex to reward that strategy, as investors are always looking ahead by six months or so. And just drawing a straight line that extends the current trend is almost sure to miss the mark.
As the emerging markets develop, their economies often rocket ahead, lifted by industrialization, urbanization, entrepreneurship and foreign direct investment.And the stocks of the companies doing business in these countries can blast off right along with them. This is what investors in Baidu (BIDU), China Mobile (CHL) and Ctrip.com (CTRP) found out a few years ago.
That's when Cabot China & Emerging Markets Report beat all investment advisories hands-down, doubling readers' retirement money four times in seven years.
Just last year:…
Our top auto stock was up 127% in four months.
Our top entertainment stock was up 113% in 10 months.
Our top Internet stock was up 106% in six months.
Our top social networking stock was up 115% in five months.
And our China stocks continue to out perform the market!
Our instant messaging stock is up 25% in three months.
Our Amazon-like online retail stock is up 36% in three months.
Our flash sale online retail stock is up 35% in two months.
Our online games stock is up 23% in one month.
All while our entire portfolio is up 42% since the beginning of the year!
Editor, Cabot China & Emerging Markets Report
Emerging Markets Specialist, Analyst and Editor of Cabot China & Emerging Markets Report
A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and editor of Cabot China & Emerging Markets Report since 2005. Under Paul’s stewardship, Hulbert Financial Digest rated Cabot China & Emerging Markets Report the #1-rated newsletter of 2006 with a 78.6% gain for the year, and the #1-rated newsletter of 2007 with a 74.1% return. Cabot China & Emerging Markets Report was also named 2007 Investment Letter of the Year by Peter Brimelow of MarketWatch