Advice and Insights - Archive

It's September, and those people who live in the Southeastern United States know what that means -- hurricane season. And boy has it started with a bang. After Tropical Storm Fay dumped rain on Florida, Gustav stormed through the south, and now Hannah and Ike are following close behind. With the uncertainly of these storms' paths, there is always a chance that they will plow through the Gulf and disrupt oil supplies. Read on for more, and how we can prepare.

One of my favorite China Strategy companies just reported its second-quarter earnings, and boy were they impressive! The results blew analysts' expectations out of the water and helped boost the stock. But this isn't the first time this company has reported quarterly growth in the double digits -- it has shown consistent, impressive growth for the past few quarters. I look for more profits to come, so read on to learn more.

I recently arrived back in the U.S. after an amazing trip to China. While meeting with financial experts to trade ideas is always a great experience, the highlight of my trip was attending the 2008 Beijing Summer Olympic Games. I am so proud that the Games were held in my ancestral country, and that China got to show the world what it's made of. It was a great experience, and I want to tell you all about it, as well as what's in store for China's future.

While everyone is worried about the depleting supplies of crude oil, there is a much greater threat looming – a water shortage. As emerging countries develop, their middle classes grow along with an increased need for water. This is putting a pinch on the world's water supplies, but there is one company that is working to solve this problem. Read on for more on this situation, and how to invest in this company whose profits are pouring in.

A significant conflict broke out between Russian and Georgia in the past few weeks, and problems there are still lingering. This is an important event, and I think it is vital that global investors understand what is happening there and the implications of the events. So read on for my analysis of the situation, what it means to us as international investors, and my current recommendation on where to focus our investments.

Food and energy prices are at painful highs right now, and they are putting major strains on wallets. Americans are cutting corners at every possible opportunity, so it is no surprise that car sales have weakened in recent months. But, there is one car manufacturer that is bucking the trend, as it is about to post a modest gain in August sales, and its new endeavor into electric vehicles is set to be a hit. So read on to get revved up about this trend.

According to recently released economic data, inflation in the U.S. is on the rise, and the economic growth is slowing by the day. This is creating a toxic combination for the U.S. called stagflation. It's plaguing our economy, and worrying many investors. So I want to talk about the effects of stagflation, my outlook on the situation, and how you can still make profits even in this environment.

We are living in an amazing time right now. At no other point in history have we been able to watch so many countries emerge to economic greatness. A big part of the emergence of developing countries is the improvements in infrastructure. I am watching a few companies to invest in this trend, so read on to learn more!

The 2008 Beijing Olympics are dominating the airwaves and internet, and China is leading the world in internet users. So it's no surprise that the internet industry in China is booming. But there is one niche of the internet that is becoming particularly popular, and that's gaming. I have an excellent play to profit from this trend, so read on to learn more.

Summer is about half way over and the sun is still shining bright. That's great for alternative energy companies that are focused on solar energy. However, with the recent drop in commodity stocks, the interest in solar energy has dimmed, and so has our solar play. Read on to learn more.

Commodities have been struggling lately, with almost every stock from oil to agriculture on a steady downward slide. While this is a relief at the gas pump and grocery market, it doesn't bode well for out commodity plays. That's why I recommend that you sell two of these plays: RIO and CNQ. Read on to learn more.

The Olympic Games are in full swing, and they are more exciting than ever. And it's not just the altheltic competitions -- China finally has its chance to show the world that it is ready to join the ranks of other economic superpowers. I expect great prosperity for China in the coming weeks, months and years, and this ETF is a great way to share in the profits.

Beijing is being an excellent host for the Olympic Games, and China is getting a ton of exposure on the international level. This has given a nice boost to Chinese plays, but I am skeptical about how the Chinese stock market will perform after the Games. Read on for my outlook, and how we can profit now.

The Olympics are now well under way, and this is an exciting time for both sports lovers and investors. That's because many investors are getting a good look at the world for global investment opportunites. And at the top of their list is India --many have seen the wealth that some Indian investors have accumulated and want to get in on the profits, too. But is the time right to invest in this emerging country? I recently traveled to India to answer this question, so read on for my analysis.

After U.S. stocks have traded downward for the past six weeks, they have finally snapped back in a recent market rally. Interestingly, the rally was lead by financial companies who reported better-than-expected earnings. Some investors are becoming more bullish on financials and the credit crunch, but I am more skeptical. Read on for my analysis and outlook.

For the next two weeks, all eyes will be on Beijing as it hosts the most important international sporting event. The Games officially started today -- one of the luckiest days according to the Chinese, 8/8/008 -- and with my new China play, I hope to share in the luck! Read on for my recommendation to profit from the increased attention and interest in China from the Oympics.

The Beijing Olympic Games are finally here! I am very excited about the Games, not only because I will get to watch them in person, but also because this is China's chance to showcase its economic strength to the world. Many investors have asked me what I expect from China's economy and market after the Games. This is an important question that will determine many of our investments going forward, so read on for my answer!

Since October, the S&P 500 has experienced a 22% correction. The financial crisis and credit crunch has weighed the market down, but this past week there has been a glimmer of hope. Second-quarter earnings have been better than expected and inflation seems to be cooling off -- both of which have supported the market. Read on to learn more, and for my market outlook.

In the past few months, it has been clearer than ever that the U.S. must find other sources of energy besides oil. The earth's oil supply is now pinched tighter than ever, and considering that it not and unlimited energy source, I think now is the best time to shift towards another way to power our cars. And right now, I think the best alternative energy source for this is electric. Read on to learn about the new wave of electric cars, and how you can profit.

With the Beijing Olympic Games only days away, all eyes are on the city of Beijing. But while the city has made some nice changes to prepare for the Games, I think that the progression of Hong Kong is equally as impressive. I just made a trip to Hong Kong, and I have some interesting things to report. So read on for my firsthand account of what Hong Kong is like now, and how we can make money from the city's prosperity.

Oil prices have retreated recently, and drivers have warmly welcomed the lower prices at the pump. However, I don't think that we should get too excited because I think the dip in prices may only be temporary. This is frustrating news, especially considering that the price of everything else has also skyrocketed. But there are ways to profit from the current trends in oil and consumer spending. Read on to learn more.

On July 24, China announced second quarter GDP growth rate. Due the country's monetary tightening policy because of record-high inflation, we saw a slight drop in China's GDP during the second quarter and the first half of the year. But it's important to note that this rate is still much higher than most countries around the globe and it's still above the country's annual average of the past two decades.

Back in February, I recommended a Chinese coal miner as a way to profit from China's booming demand for the hard substance. But now, with record-high inflation, the Chinese government is taking strong moves to curb inflation. This is ultimately hurting coal miners and related China stocks, and there's one you should sell today.

While the markets swing wildly in the U.S., international investors like us are on the prowl for ways to make money in emerging markets. I think one of the best places to look is in to companies that are profiting from growing middle classes in emerging countries. I have found a company that is doing just that, so read on to learn about how to profit even when the U.S. markets are volatile.

The domestic and foreign markets have had a rough couple of months. The Dow just experienced its worst June since the Great Depression, and the Asian markets are still down about 45% since their all-time high. While it's enough to make any investor want to run for the hills, I think that there are better times to come. Read on for my market outlook, as well as how we can profit now.

Stealing the headlines for months now is the housing crisis, as foreclosures reach record highs, and banks scramble to counter losses by raising capital. But while the U.S. is still suffering from problems in the housing market, Brazil's housing sector is just warming up. Reas on about this great way to profit from this emerging country.

We've experienced some rough times in the market lately, as economic problems are weighing heavily on domestic and global markets. However, while the rest of the world is struggling to keep their heads above water, Russia is enjoying impressive economic growth. I think this is a great place to focus our money, so read on to learn more about why Russia is ripe for investment now.

Talk about volatility! The past couple of weeks in the market have been rough ones for investors, as many of the major indexes are down so far this year. With so much doom and gloom in the markets, I think it is important to talk about what's contributing to the current global sell-off. Read on for the three main causes of the global market woes, and what I expect to happen in the months to come.

Rising energy costs have been in the headlines for weeks now, and it seems like there is no relief in sight. This makes for a painful experience at the pump, btu I have a way for us to profit from the current trends in energy. You see, the Middle East is becoming increasingly prosperous and using much of its oil to build its own cities, rather than exporting it. While this helps push oil prices up, it creates a profitable trend for us to invest in. Read on to learn more.

The emerging markets haven't been immune to the strong up and down movements of the major U.S. and Asian markets. In fact, the movement of many emerging markets is still coupled with these major indexes, which is creating a volatile environment for us as global investors. But if we look at the bigger picture, the recent market action is actually creating a nice investment opportunity for us. Read on to learn more.

While fuel prices have been going up, up, up here in the U.S., not every country in the world has been feeling our pain. In fact, Chinese consumers have been paying only $2.80 a gallon. But that has all changed, as the Chinese government recently increased the fixed-price for gasoline. Read on to learn more about this situation, what it means for China's growth, and how we can profit.

The world is finally shifting from its reliance on non-renewable sources of energy like oil to other energy sources that are renewable and more environmentally friendly. I am very excited about this movement, especially since one of the new energy favorites is solar. In fact, there is some great technology that is coming along with the development of solar power, and I think that it presents us with a great opportunity for investment. Read on to learn more.

Oil prices are on the rise, and demand for the resource is higher than ever. Major oil reserves are being maxed out, and to replace them, companies are frantically looking all over the earth for new sources of oil. Well, one company has found oil in Canadian oil sands, and I am recommending that you get in on this energy play before everyone else does, too.

Oil prices are painfully high right now, and it seems as if the worst is yet to come. Morgan Stanley predicted that the price of oil would reach $150 per barrel within the next month, and I think that they could shoot even higher from there. Demand from emerging markets is putting a big pinch on supplies, and there is a general sense that we may have reached "peak oil." Read on for my analysis of this situation.

The market action in recent weeks is enough to make any investor's head spin. Most recently, markets have been recovering from a 400-point drop in the Dow that pulled down not only domestic markets, but global markets as well. So what's causing all of this market turmoil and weighing heavily on the U.S. economy? Its huge economic issues like consumer spending, rising inflation and the credit crisis. To learn more about these important problems, my outlook and how to still profit in this environment, read on.

India and Vietnam both have incredibly fast-growing economies. But as these emerging countries quickly grow to join the ranks of other major economic players, they are running into a huge problem -- record-high inflation. To learn about how high inflation rates are affecting the economic growth of India and Vietnam, read on.

This first half of 2008 has been an eventful one in the Chinese economy. Its economic growth has been affected by fluctuating imports and exports, as well as rising inflation and appreciation of its currency. Read on to learn about these trends and their impact on China's economy. I also discuss my expectations of China's economy going forward.

Recently, the Chinese government announced its plans to restructure the country's telecom industry. The goal is to try and increase competition in the wireless space that is growing by the day. To learn the details about the plan, as well as how it will affect one of the largest Chinese telecoms, read on.

In the past few months, the price of food has gone through the roof. The cost of milk, eggs, bread, and meat has reached staggering highs. And considering that the strong food demand from China and other emerging countries isn't slowing any time soon, I think that this food crisis will last for a while. Read further to learn about China's impact on global food supplies, as well as other contributing factors to the crisis.

There has been a huge response to the earthquake in China, and it seems like the charitable giving just keeps on going. The event has brought people together all over the world, and even strengthened the national identity and pride of ethnic Chinese abroad. Read on to learn about China's recovery, as well as its people's strengthening nationality.

There are many negative factors that are wreaking havoc on the U.S. economy and consumer. Gas and food prices are rising, consumer confidence is lowering, and poor employment reports and the housing crisis have all contributed to a weakening U.S. economy. Find out the specifics about these happenings, as well as how we can still profit in this environment.

In response to the tragic earthquake in China, there has been an outpouring of donations and support from all over the world. Some of the biggest support has come from Taiwan, as the total donations from people on the island totaled over $100 million. This is a positive sign, as it shows that the relationship between Mainland China and Taiwan is strengthening.

Countries all around the world are suffering from high inflation. Emerging countries, in particular, are dealing with increased prices on almost everything. You can see this in India, where the inflation rate just hit the highest point in over three years, and in China, where prices are also rising quickly. Read on to learn about how inflation is affecting these emerging countries.

The cost of oil is rocketing to the sky, and there are no signs of prices receding any time soon. There have been several efforts made by Congress and President Bush to alleviate the cost of oil, but it seems like a smart alternative is to look for oil in other places, such as underwater. Read on to learn more about this, as well as how to profit.

In response to the devastating earthquake that rocked China recently, the country has received many donations from individuals, Chinese companies, multinational corporations, and governments. These donations have greatly helped in China's relief efforts, and as a result have contributed to improving China's social stability. Read on to learn more.

During a recent trip to Asia, I noticed that there was an increasing cooperation between many Asian countries, particularly China and India. These two countries have key resources that the other country could greatly benefit from, and I think that their increasing collaboration will create an important economic theme in the 21st century.

A few months ago, I recommended AEM as a way to play the popularity of gold and its rising price. We had a profitable run with this stock. But now that gold prices have pulled back, I think that it is time to take profits in AEM.

While on the Beijing subway a few weeks ago, I noticed that there was at least on TV display inside every subway train. But it wasn't just ads that were flashing – there was programming, too. I thought combining the popularity of public transportation with content and ads was a smart move, and that's why I am watching a company that is responsible for it.

Crude oil prices are marching higher this week, and I expect prices at the pump to only get worse as we enter the summer months. Many Wall Streeters think that the growth in U.S. oil inventory will alleviate the pricing pressure on oil prices, but they are failing to consider the impact of emerging market demand. Read on to learn about how emerging markets are having a significant impact on higher oil prices.

Many investors are still weary of investing in China. It is unfamiliar territory to some investors who are deterred from China investing by outdated or untrue information. I am tired of investors missing out on the extraordinary investment opportunities that the country has to offer, and that's why I want to dispel a popular myth about China investing.

As demand for oil remands strong and more reserves need to be discovered, this international offshore driller will likely lead the exploration. I am keeping a watchful eye on this company, especially since it is set to profit from its offshore drilling projects and worldwide oil demand.

Chuppies -- the young, affluent professionals of China -- are helping to move the country's economic growth forward. Chuppies are the first generation in years to have disposable income, and with that money, they are driving much of the 10% growth in China's consumer spending. Read on to learn why I think Chuppies will continue to lead China's consumer strength for the next decade.

Just as I expected, the U.S. Federal Reserve slashed the Fed Funds Rate and the Discount Rate by 0.25% last week. This was the seventh time in seven months that the Fed lowered interest rates, and looking ahead, there is no clear indication of what the Fed's next move will be. Read on for my expectations of the Fed, and about the market.

Since October, the Mainland Chinese stock market has experienced a 50% correction. To help support the market, the Chinese government has lowered the trading tax, also known as the stamp tax, to 0.1%. Read on to learn about what this means for out investments, as well as my outlook on Chinese stocks that are trading in Hong Kong and New York.

This past week, the Chinese stock market made its biggest advance in over six years. The gain can be attributed to a move by the Chinese government to cut the stamp tax. Read on to learn about why the stamp tax is important, and what this means for Chinese investments overall.

As oil prices continue to hit record highs, many are wondering if we will ever see relief in crude oil prices. Unfortunately, I think that prices are going to continue their move higher, especially as oil demand grows in emerging markets. Read on to learn about how this demand is fueling the cost of crude, as well as how we can profit from this trend.

The major riots in Tibet that took place in mid-March and Beijing's response to the riots attracted a lot of media attention. Many people even threatened to boycott the Beijing Olympics and protested the Olympic torch relay. These were critical events, so to help you understand what is happening, I would like to share with you my views on the riots.

China has become one of the top investment opportunities of our time partly because the Chinese government has focused on economic growth rather than the redistribution of wealth. But many investors do not understand that this has been Beijing's top priority, and are instead relying on outdated assumptions about its economic policies. Read on to learn about China's economic growth, and how to profit from the changes in China.

More countries are turning to coal for power generation, making it the world's fastest growing energy resource. All over the world, including in China, new coal-fueled power generation plants are under construction to keep up with the growing demand. But this increase in coal use is quickly outpacing supply and has pushed up the cost of coal. The increase in coal prices is shocking, but there is a way for us to profit from this trend.

We're in the middle of earnings season, so it should come as no surprise that the market's actions in recent weeks have been in response to company reports. In April, after a round of better-than-expected earnings, the domestic markets rallied, with the S&P 500 up 4.3% -- that's its best week since February.

China is pushing the current commodities boom with its growth and incredible demand for natural resources. You see, as China builds out its cities, it has needed an astounding amount of nickel and ore; as more Chinese trade in their bikes for cars, more oil is needed; and as the Chinese eat more and better food, the demand for fertilizer to keep up production is skyrocketing -- creating an excellent investment opportunity for us.

Recently, we have received some dire news about the U.S. economy. Employment rates are down, and Federal Reserve Chairman Ben Bernanke even said for the first time that the U.S. may enter a recession. Because of these recent developmetns -- especially the fact that Bernanke, who has stayed relatively optimistic in recent months, is 'fessing up to his recession fears -- tells me that the U.S. economy is in trouble.

Sometimes it seems like China and Japan are like two brothers switched at birth and have mistaken identities. So to better understand the difference between China and Japan, let's compare the two countries and see why China continues to offer a better investment environment than Japan. Let's use my recent visit there to take a look at each country's view on globalization.

Asian stocks rose last week, completing their biggest weekly gain this year. But despite these gains this past week, the overall picture for first quarter is not as bright, as global financial woes are starting to take a toll on Asian economies. I want to take a deeper look into how the global economic crisis is affecting the markets in Asia.

Asian market's rebounded this week following a higher bid for Bear Stearns and a lift in home sales. But that wasn't the only reason for a pop in Asian markets. Taiwan held an important presidential election over the weekend, and the new president plans to pursue efforts to strengthen ties with mainland China.

It's not surprising that the American stock market is volatile right now given weak economic data and earnings reports. But, as you know, economic growth in China isn't slowing and many of China's leading companies have announced strong earnings recently.

It was hot and humid outside of the Shangri La Hotel in Shenzhen last night. The smog-choked air made every breath difficult. Crowds of migrant workers filled the sidewalks while cars zipped up and down the streets urgently. Find out more about this incredible city and the growth happening there now.

The financial crisis in the United States came to a head this week, sending international and domestic markets reeling in early trading on Monday. The markets took a hit following the collapse of Bear Stearns and JP Morgan's buyout offer for the struggling financial company.

As you know, inflation has been increasing at this level for the past year. The Chinese central bank even agressively raised interest rates six times in 2007 in an attempt to curb inflation. But these efforts haven't made much of a difference. Let's look at what kind of an impact this will have on China, as well as what we should do going forward.

During the past four months, we have weighted our Asia Edge portfolio in favor of natural resource stocks that would hold up well in the current market volatility. We've been rewarded for this strategy as all eight of our natural resource and food production plays are up and making money for us. But will the trend continue?

It has been quite a week on Wall Street -- investors have experienced whiplash from watching U.S. stocks sink to recent lows before bouncing dramatically yesterday after the Fed announced a recovery plan. Let's talk about the current economic picture in the United States, and what it all means for us as investors, as well as what's happening in Asian markets.

The market has spoken. The verdict is in. Bernanke's drastic rate cuts have failed. So how do we still make profits in the market environment? By loading up on gold and silver -- both of which are free of government meddling. Read on to learn how.

The global commodities boom that we've been profiting from over the past two years continues to roll on. As you know, oil and gold have reached record highs recently as investors have boosted their holdings in raw materials as a hedge against inflation. This has created exciting wealth opportunities for investors.

U.S. stocks tumbled again on Friday, the last day of February, marking the American stock market's fourth-straight monthly drop. The Dow plunged more than 300 points during the trading session after American International Group, the world's largest insurer, posted the biggest quarterly loss in its 89-year history.

On Friday, China Medical Technologies reported earnings for the third quarter. Shares of the stock sold off sharply after the earnings report, so I want to talk about the results.

Here in the U.S., the major indexes remain volatile. But there's good news on the horizon for China Strategy investors. Recent developments in the U.S. and Hong Kong suggest that Chinese stocks will break out in the coming months. I want to take a look at these positive developments and how they're good for our portfolio.

As I've been telling you recently in our weekly Dispatches, the valuation of Chinese stocks is coming down to more reasonable levels. With high-quality China stocks now selling at lower P/E ratios, I believe it's time to add a new company to our portfolio. Many of you are probably already familiar with this fast-growing company.

Although China's tremendous growth is almost unparalleled, we must not overlook or downplay the growth being experienced by other emerging market economies, like those of Brazil, Russia, and India, to name a few. Those of you who've been with me for a long time now will know that I've recommended stocks from each of the aforementioned countries. Find out which one I have my eye on next.

As the Brazilian economy grows, so do the opportunities there for investors. This emerging country offers some excellent ways to diversify your portfolio. So I'd like to take a brief look at some of the Brazilian companies that other investors are recommending as good buys – these are the kinds of stocks that the buzz is all about.

Sovereign wealth funds (which I'll call SWFs for short) are state-owned funds that contain financial assets like stocks, bonds, property and other financial instruments. SWFs are designed to allow countries to make large-scale investments around the world.

The recent credit crunch has highlighted one of gold's major draws -- its ability to be a safe haven for cash. Lately, as the market has become increasingly volatile, investors have turned to gold and made it one of the strongest asset classes right now. There are valuable trends developing with gold, as demand for the metal has been the strongest in years, and I think it is a smart place for us to turn for profits.

From year 1500 to 1800, Peru and Mexico produced approximately 85% of the world's silver. During that same period at least a third and some people would say over 40% of all that silver eventually wound up in China. Today, the demands of modern technology have used silver in everything from electrical components to medicinal treatments.

Even though the United States has experienced a lot of economic turmoil over the past few months, I believe the economy remains resilient outside of the housing and financial services industries. Recent reports indicate that consumer spending has held up well. According to the economic data, though the spending growth is slowing down, firm employment levels at high-wage jobs are keeping higher-end American consumers active.

The grid has failed in China and many are wondering about the future of energy in this massive country. Get my thoughts on what you should be buying now to take advantage of the huge need for power in China today.

The decline in consumer confidence indicates that promises of tax rebates and lower interest rates have failed to ease Americans' concerns about falling home and stock prices and rising unemployment. Last week, President George W. Bush signed a $168 billion stimulus package, including tax rebates for more than 130 million households. Clearly this stimulus package isn't having its intended effect.

Stock markets around the world continue to bounce around within tight trading ranges. Here at home, the S&P 500 continues to trade in a 10% range between 1270 and 1400. The index ended today’s trading session at roughly 1360, which is somewhere near the middle of our expected range.

The decline in consumer confidence indicates that promises of tax rebates and lower interest rates have failed to ease Americans' concerns about falling home and stock prices and rising unemployment. Last week, President George W. Bush signed a $168 billion stimulus package, including tax rebates for more than 130 million households. Clearly this stimulus package isn't having its intended effect.

I want to talk about where the market is headed. I still expect the S&P 500 to trade in a 10% range between 1,270 and 1,400 for the next few months. After a run-up to the top of my expected trading range of 1,396 two weeks ago, stocks sold off hard last week.

It's no surprise that everyone is wondering when the current market volatility will end. Just in January, we experienced 16 days in which the Dow jumped up or sold off more than 100 points. This is bad enough, but when you consider that there were only 21 trading days in the month, the picture gets a bit more frightening.

Professional traders are using hedging strategies more and more -- especially when volatility increases during panic sell-offs like the one we saw on Tuesday. This week, I will show you how you can hedge your portfolio by shorting the U.S. market. Trust me when I say it's easier than it sounds. Read futher to learn all about Ultra-Short ETFs.

In this environment of rising volatility and a range-bound market, it is important for investors to be more opportunistic to make money. In this type of choppy market condition, the optimum holding period for positions is shorter than most of us are accustomed to. However, it can be done, and it can be very profitable.

As oil prices climb higher, cheap alternative energy has become a big topic of interest for investors. We've been able to make money with one solar play but when it comes down to it, good old-fashioned coal remains one of the cheapest and most efficient ways to produce energy. Today, I have a new buy from which to profit from -- a major Chinese coal producer.

It's been heavily publicized that Beijing has spent an incredible amount over the past seven years -- more than $33 billion -- on Olympics-related infrastructure projects. I'll tell you what to expect from China's big spending spree and which effects will spillover to after the Games.

I first recommended China Petroleum and Chemicals -- commonly known as Sinopec -- back in May 2006 as a play on higher oil prices and decreasing regulation in China's gasoline market. But recently news has come out that suggests the Chinese government will no longer ease price controls. Read further to find out what I'm recommending that you do.

As we've talked about many times before, I believe that China is one of the best opportunities in Asia at the moment. With roughly one-fifth of the world's population and a fast-growing GDP, China's market offers significant potential for investors.

Sensing potential economic weakness, the Fed cut both the federal funds rate and the discount rate by 0.5%. The Fed cut more than the modest 0.25% that most investors were expecting. This puts the funds rate at an even 3.0% and the discount rate is down to 3.5%, marking the lowest interest rate level since 2005.

We certainly know that it's been a horrible week for the major U.S. markets, but stock markets elsewhere also took big hits this past week. Major global market indices such as Japan's Nikkei 225 Index, Hong Kong's Hang Seng Index, and U.K.'s FTSE 100 Index are all now sitting on double-digit losses for the year. Most of the pressure is coming from concerns of a U.S. recession.

The ongoing financial crisis in the U.S. has had a direct impact on the global gold market. According to the most recent data from the World Gold Council, international gold demand surged 30% to a record $20.7 billion in the third quarter of 2007 from the same period one year ago. Bullion's safe-haven and hedging characteristics are especially attractive to investors during the current period of instability, greater inflationary fears and a declining U.S. dollar.

We're only two weeks into 2008, and already the U.S. market is having a tough year. In fact, the S&P 500 experienced its worst first half of January since 1982. As of yesterday's close, the S&P 500 has fallen 6.0% this year so far, led by financials, technology and consumer companies. Tech companies have suffered the biggest blow -- taken as a group within the S&P 500, their shares have dropped more than 10%.

We haven't talked much about the Russian economy. So today I want to take a look at Russia and what I'm expecting for the country this year. I'm bullish on Russia, and I believe the Asian powerhouse will have an excellent 2008 as a robust economy, strong consumer demand and an increasingly clear political landscape will drive Russian stocks higher in the coming months. I want to add a Russian company to our buy list.

The final numbers are in, and 2007 was a tremendous year! But the New Year hasn't started out so well for the U.S. markets as the S&P 500 is down 5.2% as of yesterday's close. Downward pressure is coming from weak economic data and more housing/financial industry woes. Not helping matters was last Friday's U.S. employment report, which posted its smallest increase in more than four years for December as the housing downturn continued to take its toll.

I'd like to start the year by looking back at the 2007 stock market performance of some of the world's fastest-growing countries. China in particular had a terrific year because of continued economic strength, great corporate earnings and favorable demographics.

I'm facinated by the growth happening in Brazil right now and have meen looking to find more ways to profit from this growth. My good friend and fellow newsletter writer Louis Navellier wrote an update in his blog recently about a stock that I've had my eye on for a while.

We've talked a lot about the housing and financial services industries and how they've been the source of much of the downward market pressure. Today, I'd like to talk about an industry that's usually considered "defensive" because many investors seek it out when the market heads south. I'm talking about healthcare, and if you think we're too savvy here to be investing in big, old, defensive healthcare stocks, you're only half right.

I'm bullish on China's domestic consumer spending. Overall, Chinese households spend heavily on three things in particular: education, healthcare and housing. To take advantage of these spending trends, I want to talk about the third sector: housing.

In November, the U.S. stock market sold off about 6%, and Chinese stocks traded outside of Mainland China fell approximately 15%. After the sell-off, many asked me why I didn't recommend selling more of our stocks. It's because here at China Strategy, we take a longer-term perspective with investing that's measured in quarters and years, not weeks and months.

I hope that you had a wonderful holiday and are recharged and ready to get back to business -- I know I am. There are a few things I'd like to tell you about today before we get to the updates on our companies. We need to do a quick check on the U.S. economy to see what sort of a position we're entering 2008 from and then we need to cover some interesting developments in Asia.

It seems that Russia's popular President Vladimir Putin has no intention of stepping down from power when his term expires in 2008. Although Putin formally endorsed First Deputy Prime Minister Dmitry Medvedev to become the next president, early this week, Putin said he agreed to become Russia's prime minister if Medvedev is elected president in March.

There has been no holiday cheer on Wall Street this week -- U.S. stocks experienced the steepest weekly drop in a month. Some of the losses may have been due to the recent CPI announcement. The consumer price index jumped 0.8% in November, the most since September 2005.

Exactly two weeks ago, we talked about how I was expecting a stock market rally that would last anywhere from two to four weeks. Just as we discussed, the S&P 500 Index rallied nearly 6% over the last two weeks and then sharply reversed course yesterday, declining 2%.

As you have seen, markets have been very volatile in the latter half of the year. In commodities especially, the increased volatility has made it difficult for consumers and producers to manage their costs. The more volatile environment is actually an ideal situation for our new recommendation.

Last week U.S. stocks posted their biggest weekly gain since March after Federal Reserve officials including Chairman Ben Bernanke signaled more interest rate cuts may be on the way. There's a growing consensus that Fed policy makers might cut the benchmark lending rate by as much as 0.5 point, rather than the widely expected 0.25 point, when they meet again on December 11.

As you may remember, QDII stands for Qualified Domestic Institutional Investors. The QDII program was started by China's government earlier this year. It allows brokerage houses like China Merchant Securities to create mutual funds that invest in foreign stocks. Find out how QDII's are fulfilling investor demand in China...

Even though we're investors in China and the amazing growth happening there now, we also need to be alert to current global influences and past history lessons that could inform our investment strategy. Here's an example of what I mean:

The most common question I received from members of our Investment Tour this time around on my recent trip to China was about the high P/E ratio of some of our stocks. Just because a stock has a high P/E ratio doesn't mean it's overvalued, and conversely, stocks with low P/Es are not necessarily undervalued. Let me explain...

Telecom is an especially strong sector right now because these companies link countries together in today's global economy. The most promising telecom opportunities are in developing countries that haven't experienced much media coverage.

There certainly hasn't been a dull moment in the markets lately. The global stock market sell-off continued through Monday. And in Monday's final hour of trading, a wave of panic selling sent the S&P 500 Index down to 1,407 -- about 0.5% below where the market started the year.

This month I want to add to our impressive gains with a new buy in a hot sector -- real estate. China's property market is rushing to keep up with the country's explosive economic growth. Until recently, there were very few ways we could invest in China's booming real estate sector. But now there's a new IPO on the scene that will help us take advantage of this opportunity.

The Chinese stock and real estate markets have been red-hot, but there are also other investment areas that are gaining strength in China, thanks in large part to a group of tech-savvy consumers that I like to call "Homebodies."