One of the biggest things attracting investors to China is massive population and economical growth. Investors must be careful when investing in chinese companies overseas because China lacks many of the regulatory departments similar to the SEC that prevents collusion and corruption in the United States. You need a blueprint before you make your fortune out east.

Luckily, there’s a wealth of investment information in books written by well known Chinese investment strategists. Here’s a list of my top 6 recommended books for investors seeking financial opportunities in mainland China.

1. A Bull in China: Investing Profitably in the World’s Greatest Market

You’ll learn which industries offer the newest and best opportunities, from power, energy, and agriculture to tourism, water, and infrastructure.

Rogers demystifies the state policies that are driving earnings and innovation, takes the intimidation factor out of the A-shares, B-shares, and ADRs of Chinese offerings, and profiles “Red Chip” companies, such as Yantai Changyu, China’s largest winemaker, which sells a “Healthy Liquor” line mixed with herbal medicines.

Plus, if you want to export something to China yourself–or even buy land there–Rogers tells you the steps you need to take. My only takeaway is the book was written in 2008 and is a bit outdated. It’s still a great read to get educated on the basics of investment opportunities in China.

2. China’s Economic Supertrends: How China is Changing from the Inside Out to Become the World’s Next Economic Superpower

Between now and 2018, many new opportunities exist for businesspeople, investors and individuals who want to take advantage of China’s economic transformation. Researcher and China expert Jason Inch shows you how to understand China’s economic development from a new perspective so that you can position your business, portfolio or career for the maximum return.

The author’s insights into China’s economy, its people and its political leaders have been gained through over eight years of on-the-ground experience working in China and two decades of research.

Based on discussions with CEOs, professors, politicians and entrepreneurs, this book explains why some have succeeded in China and others have not and helps you to become one of the success stories.

3. Investing in BRIC Countries: Evaluating Risk and Governance in Brazil, Russia, India, and China

With Investing in BRIC Countries, you are equipped with the best available tool for detecting the signs of poor governance.

Edited by Standard & Poor’s® equity research and governance group, it details the group’s highly successful approach to analyzing risks in emerging economies.

This book covers not only China, but Russia, Brazil and India as well. I think it’s a good read but doesn’t focus 100% on Chinese investing.

4. Doing Business in China For Dummies

This particular book gives you great insight into dealing with Chinese customs and practices to help you succeed socially and finally in China.

This authoritative, friendly guide covers all the basics, from the nuts and bolts of Chinese business and bureaucracy to negotiating with your Chinese partners.

You’ll also get the know-how you need to manage day to day, from travel tips and advice on converting money to getting past language barriers.

5. Doing Business and Investing in China Guide

Another comprehensive guide filling with in-depth strategies and advice on doing business and investing in China.

The book is normally out of stock on Amazon because the publisher printed a limited number of copies. However, there is 1 available as of this posting plus many more via used book dealers.

6. Doing Business and Investing in China PDF

This is a wonderful free 160+ page guide giving you insight on market entry, doing deals, growth opportunities and many more topics from a leading financial firm in China called PWC.

Hopefully these books on investing in china will give you some insight and guidance into profiting from the massive Chinese economy and growing GDP.

Most opportunities are satured in the west so investors must pursue other options in the south and east, mainly BRIC and Africa.

Opting to do a long term investment is one of the most gainful business ventures that a person can make. However, careful consideration of some factors in this area must always be kept in mind as while the potential for huge return profit is somewhat high, the chances of losing them are also there. In order to fully utilize the advantages and avoid financial pitfalls that are always present when it comes to investments, proper research must be conducted. Getting a financial advisor’s point of view in the case can also be helpful.

One of the smartest advices that can be given is to be cautious of “great investment tips”. Even if you heard this from a close and trusted acquaintance you should never instantly bite. It has been an undeniable truth in the world of investments that if something seems too good to be true, it usually is. But don’t take this as a reason to avoid a little risk here and there, just make sure that you have something to land if you unfortunately have the carpet yanked from out of your feet.

Once you’ve chosen an investment and the first few days seem terrible don’t back out immediately, remember that this is a long term investment and if you actually studied the investment thoroughly first and you were convinced that it’s worth it, then why fuss over a small bump on the road? You should only act to make the proper changes when the investment seems to be going sour. There’s a difference between holding on to that small glimmer of hope and holding on to what is evidently already lost.

Alternative investments are something that should also be looked at as this will expand your profits if you have a habit of investing wisely. Long term investments are considered to be a lot safer than short term investments and are highly recommended to first time investors due to its relatively low risks.

Some key facts that curious first time investors must remember however, is that because of the rules in long term investments, all your funds will not be available to you for a set amount of time. This is for the best though as letting your investment grow over time will yield the most profits. Investing in technology and the gold market for 2013 seems to be a no brainer for now,

PowerShares QQQ still holds the highest stock at the beginning stretch of 2013 but Apple is not far behind and is a potential leader this year if they are able to manage pulling back their reigns at the beginning of the financial race to the top. Most of the resurgence in technology last year was all thanks to Apple, and although the company started strong they fell a bit flat during the final months but this is not seen a s problem this year.

Trades in gold have also seen a rise last year and still shows potential to increase this year.

When it comes to investing there really is no sure way to know the results. The future always holds ambiguity when it comes to its plans and no one can decidedly know where the stock market will fall in the next couple of months. Knowing what flags to look for will also help you in deciding where the best investment option will lie in a couple of months.

Investment is always a game of chance; hence, the most proficient way to play this game is to accurately manage your risks and rewards, don’t take any unnecessary risk and you can bet to produce a rather prosperous year.

Investing in real estate can be a great choice for many businesses and individuals. While many people understand the basics of real estate investment in the United States, it can be challenging to understand how real estate investments work in other countries. The following guide explores how to invest in Chinese real estate.

It’s important to understand the differences between property rights in China and the United States. In the United States, an individual can own his or her own property. While the US government may seize land under the law of eminent domain, most homeowners don’t have anything to worry about. In the United States, capitalism is king. People are able to privately own their property and can maintain rights to it.

China is a hybrid capitalist-communist country. In China, no one own his or her property. While many people build homes every year in China, the land underneath the home is usually leased from the government. Under the terms of the lease, the government is allowed to seize the land when it wishes.

Over the past few years, there have been thousands of cases where homeowners in China have had their land seized by the government. In most cases, land is seized to build new housing developments or industrial facilities. In many of these cases, homeowners received minimal compensation for the value of their land. Because of this, it can be challenging to invest in Chinese infrastructure.

One of the best ways to invest in Chinese infrastructure is through a large company. While not all companies are state-owned, many Chinese companies have a favorable reputation with the government. Many large companies have what is known as a “red phone.” The red phone connects the managers and industry leaders of Chinese companies with the Politburo, the ruling Chinese party. This allows companies to have privileged access to a variety of resources.

For investors, you can invest in Chinese REITs to own china real estate without the extra risk.

It’s important to make sure that any investments in China are done through a well-known company or investment group. Since many private properties are subject to seizure, it’s essential to avoid buying a piece of property that is considered low value. Under the law, the government is not required to compensate individuals if their land is seized.

While investing in China can be a challenging experience for many businesses and individuals, it can be a financially rewarding venture too. However, it’s essential to research any investment opportunity thoroughly before making any large decisions.

The mobile space continues to heat up every day. Mobile apps, mobile transactions, mobile advertising and mobile devices are playing a key role in determining the value of the next trillion dollar company.

Sometimes in order for a company to rapidly adapt and compete, acquisitions much take place and at a rapid pace.

Google made 50 acquisitions in 2011 and continues to do so in 2012. Facebook (FB - Trade) recently made plans for “massive acquisitions” this year and most in mobile. Facebook has already purchased a single mobile app company for $1 billion and plans many more.

The most valuable company out there, Apple (AAPL – Trade), has recently acquired a mobile app search company.

Below are 5 companies that are well positioned as takeover targets in the area of the overall mobile Internet.

1. Vringo (VRNG – Trade)

Vringo is a company that provides mobile apps and a video ringtone product platform that allows users to create, download, and share mobile entertainment content in the form of video ringtones for mobile phones; and Facetones, which allows users to create social picture ringtone and ringback content in the form of animated slideshows sourced from friends’ social networks.

In relation to a patent dispute with Google (GOOG – Trade), Vringo has received some attention based on receiving a positive Markman ruling. At that time the stock was at $3.70 per share and went to $5.45 a few days later. This was a 45% gain in 5 days driven by the favorable court ruling.

These Markman rulings determine what language the jury will hear when determining whether or not the patent has been infringed. They have a significant impact on the potential outcome, in this case of Vringo vs. Google.

A company like Google, which is used to making defensive acquisitions, will no doubt look at a company like Vringo as a potential takeover target if uncertainty continues related to this potentially significant patent ruling. A price target for a Vringo takeover could easily reach $7.00 per share.

2. Mimvi (MIMV.OB – Trade)

Mobile apps are making or breaking the successful shipments of smartphones and mobile devices.

Mimvi knows this. Mimvi, also known for being “the Google of mobile search platforms” that helps people find and discover mobile apps, is succeeding in becoming the leading platform for providing search and recommendation services to the consumer and enterprise on the mobile front.

It’s essential to note that Mimvi competitors, Chomp and Quixey and now Facebook, have drawn quite a bit of attention. Chomp was recently taken over by Apple while Quixey recently raised a total of $24.2 million, part of which was raised by Google’s Eric Schmidt.

This places a valuation close to $100 million on Quixey, which in turn translate to a stock price of over $2 per share on Mimvi.

Meanwhile, Facebook, like Apple, is looking to take over companies to help its mobile app initiatives. Mimvi has also attracted top executives from Google to smartly position themselves as an attractive target.

The mobile search space is white hot and shows no signs of slowing. Just as with web based search engines, the revenue opportunity for mobile based search engines is tremendous.

This is exactly why Mimvi remains as a prime takeover target as they lead the mobile search space in terms patentable algorithms, of number of search results and relevance. A takeover price target for Mimvi could reasonably be in the $5.00 per share area.

3. Mitek Systems (MITK - Trade)

Mikek Sytems has strategically positioned itself to be part of the mobile payments and transactions revolution. Mitek Systems offers the sale, and service of software solutions related to mobile imaging solutions and intelligent character recognition software.

It provides Mobile Deposit, a software application that allows users to remotely deposit a check using their smartphone cameras; Mobile Photo Bill Pay, a mobile bill paying application that allows users to pay their bills; Mobile ACH Enrollment, an application that enables consumers to enroll their checking accounts as funding sources for mobile payments; and MitekONE, an enterprise platform that addresses various deposit types.

Many are saying that the next trillion dollar company will be one that is front and center when it comes to mobile transactions. Interestingly, Mitek Systems has suffered a decrease in its stock price.

Combined with being in the right place at the right time, Mitek Systems, can be an attractive takeover target at its current levels. A target price of $8.00 per share could be in order for a company like Mitek Systems.

4. Augme Technologies (AUGT.OB - Trade)

Augme Technologies has been described as a “Patent Gold Mine With Buyout Potential” by others in the past. Augme focuses its technology on providing strategic services and mobile marketing technology to consumer and healthcare brands.

The company offers mobile marketing, and advertising technology and services to brands, advertising agencies, media companies, and enterprise customers.

It provides AD LIFE, an interactive software-as-a-service platform for marketers, brands, and agencies to plan, create, test, deploy, and track mobile marketing programs across various mobile channels, including SMS, 2D/QR codes, mobile Web sites, advertising networks, social media, and branded applications.

The company’s patented device-detection and proprietary mobile content adaptation software provides a solution to the mobile marketing industry problem of disparate operating systems, device types, and on-screen mobile content rendering.

The revenue opportunity for a company like this is clear. Largest competitors of Augme have to make that age old decision to either buy or build.

The competitive landscape for mobile advertising is changing rapidly.

Large over-sized competitors in this area such as Microsoft, Google, Apple, Samsung or Facebook may not have enough time to innovate and build in-house mobile advertising solutions.

This is the reason Augme Technologies can be viewed as a potential takeover target. Augme is currently trading at about $1.50 per share.

A target price of $4.00 per share would not be out of the ballpark for them, considering the value of the this space.

5. Glu Mobile (GLUU – Trade)

Glu Mobile is an intriguing company, as it had a pure focus on mobile gaming apps long before companies like Zynga (ZNGA – Trade) ever did.

Glu’s games are gaining traction ever quarter and their games stand to have the same opportunity for consumer adoption as some of the world’s most popular titles like Angry Birds or Draw Something.

Glu also has the potential of ousting old traditional gaming companies like EA (EA – Trade) or Take Two (TTWO – Trade). This introduces a unique and powerful value that Glu Mobile retains that could be very attractive to those companies.

Of course, at the same time, Glu remains a threat to these companies which could trigger defensive acquisitions. Mobile gaming apps are one of the most popular segments of mobile content that consumers are searching for and downloading.

Glu is certainly executing in one of the most exciting spaces since the dawn of the Internet. It can be expected that Glu Mobile will be an attractive takeover target as the mobile gaming area is one of the main reasons many consumers purchase mobile devices and tablets.

It’s clear to see the attraction that Glu Mobile holds with companies that are battling it out for consumer adoption of their devices.

Some are now considering Glu Mobile to be “The Biggest Acquisition Target In The Gaming Market” Glu Mobile is a fair target for a takeover as many are seeing and while it’s trading just over $5.00 per share, a takeover price target in the range of $8-9.00 per share seems reasonable.

Conclusion on Mobile Acquisition Takeover Targets

Diversification is important when positioning investment in takeover targets. It can be anticipated that more takeover targets will arise in the future as the mobile Internet begins to take over the lives of most every consumer on Earth.

Choosing the right personal finance money management software can be daunting in a world filled with endless choices.

In this review, I will cover Mint, the preferred money management tool for InvestorTrip staff and clients.

Mint.com Overview

• Founded: 2005
• Total Members: 4 million
• Security: Uses 128-bit SSL encryption
• Cost: It is completely free!
• On the Go: Offers free mobile apps to track your money

What is Mint.com?

For the individual who is looking to keep their finances in order and even find effective ways to pay off debt; Mint.com has one of the most amazing money management software that has ever been created.

This powerful tool is not only available on your computer or laptop, but is also available in a cellphone application so that you can check your finances, add expenses and even pay bills through an easy and effective application on the go or at home.

Click Here to Join Mint.com Now

How Does Mint.com Work?

One of the best things about Mint.com is that it’s free for all to use! It gives you power over your finances in a way that no other program has ever done before.

Your checking account, credit card spending, loans, investments and even your personal property such as your house and cars can all be set up and put into a realistic and smart budget plan within 5-10 minutes.

Once you’ve inputted all of your information you can easily see all of your balances at once, monthly spending and savings tips are available right there on your user dashboard along with all of your financial transactions, goal setting, trends, and many more.

With the easy to use iPhone or Android mobile application, you can bring it with you anywhere and have the power of your finances in the palm of your hand when you need it most.

As with any other budgeting software out there, it’s important to ask about the security of the site and how secure your personal information will be.

Your finances are personal and if found in the wrong hands could be detrimental to your credit and your day-to-day spending. Mint.com uses the same security technology used by financial institutions but doesn’t give you the option to move money from different accounts.

This is essential in keeping your finances safe if your password becomes available to someone other than yourself.

Alerts give you the power to know if there is any abnormal spending or if anything seems wrong with your account.

Making sure you keep your password safe and that you have the proper virus protection and firewall on your computer or mobile device will help to ensure that there are no issues with security on your Mint.com account.

Most Popular Mint.com Supported Banks

Mint literally supports thousands of banks across the United States, however they publicly publish the most popular banking institutions online. Here they are in order:

• American Express
• Bank of America
• Chase Bank
• Citibank
• Fidelity Investments
• Fifth Third Bank
• ING Direct

Complaints on Mint.com

There has been word about one of Mint.com’s affiliates who are less than worthy whom made customers disappointed and uneasy about using the software.

Another issue reported with the Mint program is that there are some hidden fees within that are not disclosed when signing up; this includes a “free” credit report that requires you to set up a monthly credit monitoring account.

Mint.com’s Response

Mint has responded to these complaints by stating that they link to two of the largest credit monitoring bureaus because they provide value to their customers.

Linked to the Mint.com software is a person’s credit score and their credit report so that you can easily access it within your Mint software.

Since they use affiliates in order to make money, they can’t always guarantee that an affiliate will be as secure and reliable as they are, this may attribute to customers who believe that Mint.com is a scam.

Forget checkbook registers, paper statements and multiple online banking and loan accounts. You have the control to access all the information you need right there on the Mint.com software.

Adding your financial institutions is easy; and once added you can view them all in an overview by company name, category and the amount of the transaction.

Awesome Features

One fun feature is that you can view the US spending average compared to your own spending so you know where you stand among the millions of other consumers in the US.

Categorizing your transactions is as simple as a click and can help you to organize by a specific holiday, type of item (household, food, etc); this is all possible with Mint.comand you can even make up your own categories along with using the pre-set ones as well.

Create a Budget Quickly and Easily

The Mint.com software will help you set up an automatic budget and also allows you to create your own as well.

This can be separated by category, monthly and yearly as well as the option to roll over money that was saved in the previous month.

An easy to read and follow graph gives you the power to view your expenses all at once so you know just where you stand on all of your finances.

The ability to include things into your budget once, weekly, monthly or annually makes budgeting simple and more user friendly that any other budgeting software out there today.

Track Important Trends and Save More Money

This feature from Mint.com allows you to view your finances in a number of different graphs. Whichever type of graph is easier for you to follow is available through this amazing software.

Compare your own finances monthly or even compare to the US average. Anything you need to analyze your finances is right there and simple to use.

Track Your Investments All in One Place

Mint gives you the power to track your investments all in one place. You can view the performance, value, compare and the allocation of your investments; along with the ability to get recommendations on your investments as well.

This makes saving for retirement much more possible since you can do it all in one easy to use program. Giving you options for saving on a broker and other ways to save with your investments makes Mint.com truly sensational.

Receive Timely Alerts to Avoid Costly Financial Mistakes

So you don’t have to keep checking your Mint.com software after every transaction, and so that you can know when you’re getting close to running out of money, alerts are available through the Mint software.

With low balance alerts, bill reminders, spending alerts and even when you have reached a goal, Mint.com helps you stay up-to-date with your finances without spending hours analyzing budgets and adding things up yourself.

Mint Mobile Apps for Blackberry, Android and iPhone

You can track your Mint account via any supported smartphone quickly and easily. The app works the same way as the website does.

For some in-depth mobile app reviews, check out the Mint.com iphone app review below:

and the Mint.com android app review:

Mint.com Security: Is Your Money Safe?

One of the most common questions is website security. In order to prevent serious threats, security breaches, Mint adheres to the following security protocols:

• Protect Your Assets with Bank-Level Security -- Mint uses the same 128-bit encryption and physical security that banks use. Their practices are monitored and verified by TRUSTe, VeriSign and Hackersafe, and supported by RSA Security.
• Only Receive Read Only Access -- Mint is a “read-only” service. You can organize and analyze your finances, but you can’t move funds between–or out of–any account using Mint. And neither can anyone else.
• Guard Your Money 25/7/365 -- Mint increases your financial security through  email and text alerts that notify you about any large purchases or unusual changes in your  accounts and more.

For a more in-depth look on Mint’s security, online security expert Jason Owens asks the same question: Is Mint.com Safe?

Ready to Sign Up?

Signing up for Mint.com is very simple. All you need to create a new account is:

Your email address
Country
Zip code
Passord

Once you’re in you have the power to start wherever you want. Adding your financial institutions, creating your budget, setting up alerts and linking to a credit monitoring company are all within your discretion.

The easy to use and simple to understand instructions make budgeting fun, with their colorful graphs, categories and many other features give you the power to follow your budget in a customized way that fits you best.

Setting goals and reaching them will give you a sense of pride and accomplishment and really allow you to actually “see” where all your money goes rather than simply notice your money is all gone.

Mint.com Pros and Cons

As with any other company or online software out there, there are always good and bad views on the overall product or service.

With Mint, the good definitely outweighs the bad, but here you’ll find a great list to help you along with your decision.

Pros:

• Easy to sign up
• Simple to use for both iPhone and Android
• Mobile ability
• Alerting capabilities help keep you in charge
• Savings tips
• Trending
• Free

Cons:

• Inability to plan ahead (but will most likely be available in the future)
• Auto-assigning of transactions can sometimes be incorrect
• Some affiliates might not be trustworthy
• “Free” credit report isn’t really free

Final Recommendations

Overall, this powerful tool is great for just about anyone. Giving you the ability to see all of your finances in one, easy to follow and user friendly application at home or on the go on your iPhone or Android mobile device puts you in control of your expenses.

Goal setting and budgeting make it easy to plan for your future rather than living paycheck to paycheck.

Save for your retirement or your children’s college funds, and get great savings on some of Mint.com’s affiliates who offer savings exclusive to Mint.com users.

These affiliates are how Mint makes it’s money which is why they can offer you this powerful tool for free.

Taking advantage of their programs allows them to stay free and gives you options on saving money, planning for your future and the ability to combine all your information in the same place rather than memorizing a million passwords for your different financial companies.

With online bill pay, they make it easy to get all your bills done in one place at home or on the go.

Forget about paper billing, check registers and other online software that doesn’t offer even half the features that Mint.com offers and start seeing your finances all together, categorized and in a way that you’ve never seen before.

Mint.com is the future of financial well-being and can help you to get out of debt and stay that way for good!

Click Here to Join Mint.com Now

All stocks at some point in time will go into a period of consolidation.  This is healthy as it allows the stock to digest its gains and set a new area of support from which to eventually move higher.

One long side pattern that typically yields big gains is what we call the “Right Side Of The Cup Crossover Pattern”.  Let’s take a look at SNHY:

As you can see, after a nice uptrend, SNHY consolidated its gains and traded sideways tracing out the bottom of a cup formation.  By trading sideways, it has created a trading range as outlined by the blue box.

The right side of the cup crossover occurs when SNHY cleared this blue box to the upside — that’s the point to initiate a long side trade as it usually signals that the stock is ready to build the right side of the cup.  In this case, SNHY ran from $26 to the $33-34 range in short order.   Just one or two trades like that a month will take your portfolio places.

Now let’s look at a current set-up — VHC:

Want to be alerted to set-ups like this before they trigger trades?  Visit our blog site and sign up for our free newsletter to learn more and receive our free report — “How To Outperform 90% Of Wall Street With Just $500 A Week.”

World leaders routinely bog themselves down in the legislative mundane, promoting small social programs or new economic incentives for minute “Us vs. Them” political gains. However, neither Dilma Rousseff nor Alexandre Tombini are interested in petty politics, and as their terms begin, they’re ready to get things done.v

Banco Central do Brasil's new President Alexandre Tombini: out for blood?

Rousseff’s Fast Start

BRIC relations, as we have seen, are generally relatively cozy. Each country knows their role in the new economic powerhouse, and each are usually “polite” enough to keep the serious public discussion to a minimum. However, this is not the case for the newly elected president Rousseff. No, Rousseff wants a serious talk about China’s currency advantage.

Rousseff believes, as do many, that an artificially low Renminbi is hurting Brazil’s exports to China. Such artificially low currency values mean an unbalanced trade benefit, one that has propelled China’s foreign currency reserves to become the fastest growing stockpile in the world.

However, she’s not stopping at China, either. Her new proposals call for a cut in spending and a cut to inflation, two actions which are generally considered to be recession creating. Rousseff, however, sees opportunity in shrinking government and controlling monetary policy, allowing for Chinese-Brazil discussions to make waves in the currency markets. A new budget and central bank president will cool otherwise crippling inflation.

Alexandre Tombini’s Mission Impossible

Alexandre Tombini is the new president of Banco Central do Brasil, otherwise the Bank of Brazil, or more commonly, Brazil’s central bank. Early indicators suggest Tombini is out for blood, hoping new central bank goals will help reduce internal inflation and keep Brazil on a path for growth.

The first goal is to aim lower, one that should be easily achieved. While annualized inflation of 4.5% is the bull’s eye for the government, Tombini wants to go lower, shooting for a target of roughly 2% plus or minus 2% fluctuations. Such low inflation isn’t commonly seen in the emerging markets, but in contrast to the current inflation rate of nearly 6% annually, 2% doesn’t seem so bad after all.

The “Selic” interest rate, the Brazilian benchmark, is expected to take a hike on January 18th and 19th. The rate currently rests at 10.25%

Emerging Market Austerity?

The new presidential duo looks more like developed world dignitaries than the leaders of the Latin American emerging market. However, now may be the time to prepare Brazil for a future of world leadership.

The country maintains a healthy trade surplus that will allow it to exhaust some of its pricey government debts that currently amount to roughly 40% of annual GDP. A policy implemented years earlier exchanged foreign debt obligations for currency-linked debt products, a move that saved the country billions of dollars and averted a growing trade imbalance. Later investments in infrastructure meant oil independence and made Brazil one of the greatest uses of hydroelectric power.

Wall Street would be wise to watch this new duo. Their plans, should they come to fruition, will set Brazil up for an internalized national debt, reasonable inflation rate, and real, positive economic growth while continuing the upside in the Brazilian Real. This is a pro-growth administration in an economy that, even without government intervention, was already set for explosion.

Canada maintains no reserve ratio for banks;China requires a whopping 18.5%.

Wen Jiabao, the Chinese Premier, may have the economic quote of the year. After China’s central bank declared that it would raise the benchmark overnight interest rate by a quarter point, he commented, that “inflation expectations are more dire than inflation itself,” noting that while inflation is a concern, so too are investor expectations.

Thus far, in the non-emerging markets, it has been the fear of inflation – and not inflation itself – that is sending prices higher. In the emerging markets, at least in China, higher benchmark rates are intended to be a solution to ever rising prices in Chinese real estate. Some contend that this real estate market is indicative of a bubble, and that just like the United States, higher real estate will eventually lead to a pop.

Why the Chinese Market Won’t Pop?

To showcase this point, one country often forgotten in the world of investment will have to make a guest appearance. Canada, which may as well be an extension of the United States, neither suffered a massive real estate bubble, nor did it see any real decline in prices, even as its largest trading partner, the United States, crippled to a bursting bubble.

So what do the 2000 Canadian rise in home prices have to do with a 2010 rise in Chinese real estate prices? Not that much, but they do share a number of similarities.

Learning from Canada vs. the United States

At the height of the US real estate market, one out of four new loans was made to sub-prime borrowers. In Canada, that number hovered around 5 percent. In China, loans for property are difficult to obtain, even by the most creditworthy, and the closest China ever came to “sub-prime crisis” may have been US Treasury default fears following the Fannie and Freddie bailouts with unlimited lines of credit.

At the height of the US real estate bubble, the United States was shedding capital at roughly $50 billion per month in a growing trade deficit, while Canada enjoyed a positive trade balance all the way up to 2008. China has trade surpluses of roughly $200 billion per year, every year.

Canada maintains no reserve ratio for banks, while the US required 10% and China requires a whopping 18.5%, all the while hot money knows no difference between either China nor Canada. Both countries saw massive new foreign investment (Canada’s oil trusts and China’s consumer sector), and each country throughout its bubble had a zero or negative real interest rate policy. As for deleveraging, Chinese speculation is almost entirely in cash, where the United States, and even Canada, had at least some of their real estate runs due mostly to lending growth.

The Long Run

Is real estate a strong, pro-growth investment? No. Real estate is a boring, slowly rewarding, investment that is usually found in consumption, rather than production economies. However, with rates as low as they are, and inflation pushing higher, real estate is an attractive investment.

On the other hand, higher rates means borrowed money will have to find somewhere else to go. If this money finds itself in the stock markets, watch out. There isn’t a ceiling high enough to hold that explosion.

The fixed income financial markets have been as exciting as ever. Central bank action is leaving the profits thin, but traders who hold pre-financial crisis fixed income investments, especially in long bonds, are doing better than ever. Lower yields on bonds, due to their inverse properties, mean higher prices.

Part of the problem is the comparative advantage of emerging market investments. For one, interest rates are significantly higher than in the developed world, and the credit rating of many corporations and emerging market governments has improved with time.

In addition, just as a stock might rise in value as it is added to the S&P500, for example, fixed income often rises in value as it reaches a new rating level. This effect is more noticeable with available risk capital at its lowest levels, as investors push cash into the safest asset classes. With each step up the inverse risk pyramid is even more cash waiting for performing debt obligations, along with lower expectations for yields, and thus, higher bond prices.

A Systemic Situation

The bond bubble is not a wholly emerging market event, but the emerging markets are where it is most obvious. Falling currency values in the developed world, combined with exceptionally low interest rates, bring an excellent carry trade opportunity for the developed markets at the expense of inflation in the emerging markets. To solve this issue, central banks will have to cut down bond investors from within their own borders, pushing up rates and driving down bond values.

Higher rates mean lower bond prices, paper losses, and very little exit strategy. However, worst of all, investors buying long bonds aren’t seeing the rewards of what they’re financing. 

Brazil is using excess cash for investment in state-run companies, Russia plans to invest in new roads and infrastructure, and India is preparing for a historic expansion of public infrastructure, including roads, telecommunications development and utility spending. For the most part, Chinese government spending is to remain flat.

Therefore, if investors are to dedicate their cash to these popular BRIC countries, they would be largely financing public-sector investment for private sector growth. In return, emerging market investors get some downside protection, reasonable yields, and dollar diversification. However, the upside is largely limited to changes in monetary policy, not economic growth.

The safer, and perhaps more rewarding, fixed income investment is located right in the middle of the developed world in solid, blue chip dividend stocks. An uptick in growth means better growth, as well as an expansion in earnings multiples and a drop in dividend yields for short term profits. Growth in the emerging markets, however, means falling bond prices, rising yields, and a locked-in trade.

One of the most important elements to international investment strategy is keeping enough powder dry for new opportunities. Not only do developed dividend payers offer yields, but they offer some downside protection, and most importantly, protection from rising central bank activity in the emerging markets. Plus, with most investors already holding at least some developed world assets, such a portfolio rebalance can be done without changing net investment in each geographical area.

For most people on the outside, India has become the end destination for their telephone calls. However, inside the borders of this Asian country is a near 180 degree change in culture, wealth and growth. As more and more companies find Indian outsourcing to be an excellent opportunity for bottom line cost cutting, Indian families are seeing top line income growth.

Rising inflation statistics merely helps new investments come into realization.

All this income is finding the wallets of people who are eager to spend it on themselves and others – and on the things most in the developed world find to be near necessities. The cell phone, computer, and personal transportation are a staple to the average person in North America, but have only recently come into reach for the growing Indian middle class.

Those three products, however, require other items. A cell phone doesn’t work without cell towers, computers and electronics require electricity and fiber optic lines, and the car requires roads suitable for easy traveling. Unfortunately, in most of India, this necessary infrastructure isn’t in place, and where it is in place, it’s quickly wearing out.

The massive underinvestment in infrastructure is best demonstrated by its power grid. While cell phones and computers are a recently development, electricity is a product of the nineteenth century. Today, peak demand for electricity is an eighth higher than capacity.

Moderate Inflation Helps

Improving inflation statistics only help to make these new investments possible. November’s year over year inflation reading at roughly 7.5% is moderate, if not low, for India. Inflation was the worst at the start of the year, with inflation nearly two times higher in February than in November.

The falling inflation rate allows for flexibility in public investment. The government has planned to spend as much as $500 billion through 2011 in improving its infrastructure and making the travel of people, products, and information more reliable and efficient. The boon, of course, is that more efficient transport of those three elements means only a more globally competitive Indian economy.

Playing on the Internal Factors

The simplest play is perhaps the most obvious. The EGShares India Infrastructure fund, though thinly traded, is to Indian infrastructure what the Dow Jones Industrial Average is to American brands. The index tracks 30 different large cap companies (those most capable of handling public contracts) involved directly in construction, electricity, telecommunications and transportation.

As an aside, its biggest investment is in Tata Motors, a company known for its roots in Indian transport vehicles for public and private use. A full 12% of the fund is shaped around direct plays on Indian cellular phone companies.

Both the government of India and its people know that an investment in infrastructure is the only way this massive country can be competitive in the international markets. While China’s infrastructure boom may be cooling post-2009 stimulus, India’s boom is just getting started.

If investors accept compound interest to be the eighth wonder of world, then it has to be globalization that is the ninth. With each passing day, conglomerates move products from destination to destination, from the designer to the manufacturer and then to the shipper before it finally reaches the vender. Even services, mostly financial related, are exported and imported before they reach their final destination.

American firms find it difficult to access foreign markets.

American firms find it difficult to access foreign markets. However, while the tangible and intangible may see several borders, the products themselves usually reach one type of end user, often in only one place. Companies that have nearly perfect business operations in the developed world are finding the emerging markets an incredibly tough sell.

Emerging markets haven’t been a problem for local companies, which leaves many to believe that doing business in the emerging markets is made almost impossible by government, not by the consumers themselves. Just last week, Walmart announced that it would shut down its Moscow office and leave Russia, finding the climate too difficult and uninviting for future acquisitions.

Other retailers have left Russia. Carrefour SA, a French retailer, left in 2009. The German Metro Group and very famously, IKEA, left the country as well. It was only recently discovered that two IKEA executives, despite their short stay in Russia, had made bribes for access to public utilities in
Russia.

Completely Different Markets

There exists a great divide between the emerging markets and the domestic markets, particularly when it comes to the culture of both the people and government. Today’s emerging markets are perhaps as protectionist as ever, sealing off entry to their local capital markets while promoting takeover of assets in other countries.

Anti-trust laws in China have been used routinely to block or slow foreign purchases of local companies, but are rarely involved in structuring that leads to massive, domestic monopolies. Russian courts and legal system have shifted ownership rights overnight, and as evidenced by the growing disparity between multiples in BRIC firms, worries persist about Russian government involvement.

American firms are finding it incrementally difficult to access foreign markets. Walmart, a company that is perhaps as American as apple pie, is finding that the locals don’t like its brands. In fact, its acquisitions are keeping their own names after Walmart famously fell to the German Aldi in its home market some years ago.

What Investors Can Do

Investors have to go to the source with emerging markets to get the best bang for their buck. With the exception of Philip Morris and a handful of others, American firms aren’t getting into foreign markets, nor are they doing so cheaply. Most have concluded that the acquisition is better than the merger, and almost always better than expanding a brand naturally. However, while corporate giants may justify paying acquisition rates for major brands, individuals see better performance in going directly to the source.

The benefits are twofold: the brand may be acquired by foreign companies, or that the political favors may keep local companies in business. International investors are no longer justified in owning domestic brands as access to emerging markets.

Truthfully, there is no set in stone BRIC. The term, coined first by Jim O’Neill, has kept true to its acronym. Reference BRIC nations today, and most conclude you mean Brazil, Russia, India and China. However, since the acronym was coined in 2001, additions like South Korea (BRICK) have led to new, interesting combinations.

Like the population bend in India, demographics play a key role in Turkish growth.

Now, nearly ten years after the term was first used, there exists and on-going debate about the future of the acronym and which countries could and should be added, as well as which should be dropped. While “BRIC” may have been used by one Goldman economist, fund companies nearly own dominion to use of the name, and new discussion has emerged about the future of the big four growth economies.

Replacing Russia

The first, and most common, call from investors is that Russia should be replaced among the group. Russia boasts per capita GDP nearly three times higher than China, just over nine times greater than India, and 50% greater than Brazil. Plus, with its growing reliance on commodity exports — of mostly oil to China’s growing manufacturing and transportation powerhouse — a play on Russia has become, for most, a play on commodities.

Possible replacements are abundant. One common call for replacement is Indonesia, which is quickly coming to as a strong emerging market and a country filled with economic growth. However, still a concern is the role of government in its economy. The government took control of more than 160 different institutions and businesses following the Asian financial crisis, though most now contend the government could take a step back and allow its market economy to prosper.

As is commonly seen in emerging countries, Indonesia remains mostly an agriculture economy with a growing capital base and consumer class. When growth comes full circle, economists believe fewer will work in farms and instead move to more productive jobs in the manufacture of goods, including textiles and clothing, electronics, and furniture. Indonesia is slated to grow more than 6% per year with a far more reliable projection than volatile Russia.

Considering Turkey

Turkey has yet to become a big destination for foreign investment, but with improvements in government, a reduction in its deficit and an improving credit quality, those following Turkey see opportunity knocking.

Turkey earns a rating just one step under investment-grade from both Fitch and Standard and Poor’s, but the CDS markets say differently. Credit default swaps for Turkish debt sell for prices lower than both Chinese and Russian insurance, a mark of the country’s credit quality. By 2012, Turkey is aiming to cut its debt-to-GDP ratio by 10% while reducing its current deficit by 30%, from 4% of GDP to 2.8%. In that time, projections suggest Turkey will manage 6% annual growth, making it the king of financial austerity — should projections turn into reality.

Much like the population bend in India, demographics play a key role in Turkish growth. An explosion in population growth since 1980 leaves the current median age at 28 years old, meaning there are still many years of productivity until the latest baby boom turns into a baby burden. The next big play in BRIC may not be in BRIC at all, but in front-running the new emerging market formation. In 2010 alone, investors socked more than $100 billion in emerging markets, of which $60 billion found the stock markets and $40 billion found fixed income. While that amount may not fill one month of the US budget deficit, it’s enough to provide for a wild ride in the emerging markets.

Inflation concerns are brewing all around the world. Leaders of the developed world push their central banks to inflate, whole governments enact fiscal stimulus and bailouts, and commodities soar as the effects of negative real interest rates permeate through the world economy.

Cooling Bubbles in China

In China, there is a much larger concern. Inflation first found itself present in the real estate markets, and subsequently, the government nearly shut off speculative investment with a requirement for as much as 50% down on the purchase price. That bubble was thwarted.

Next, cash flew into gold and silver at the bequest of government, but that has yet to become a problem, since it is a world market. However, as time goes on, base metals and other structurally significant commodities are rising in price as wages stagnate and foreign investment flocks into China. To cool off the boom, the central bank has fought with its reserve ratios, rather than its target rate.

Since 2002, the reserve ratio has risen from 6% to a peak of just under 18% in 2008 before falling to below 16% and quickly rising to 18.5%, their highest ever. The most recent increase was the third such increase in less than one month. So far, efforts to curb the growth have done nothing with M2 money supply growing 19% in just one year.

Interest Rate Action

At some point, investors are going to demand interest rate action at the Chinese central bank, either by their voice or with their dollars. Chinese credit default swaps recently ran as high as 71.5 basis points, or .715% of the price of the bond. Investors worry that should China contract too quickly, the risk of default runs high, and through the markets, they’re showing their cards as to how they believe the Chinese central bank should act.

Central bank action in China is very much different than you might find elsewhere around the world. While Keynesian economists globally tend to focus on the balance of payments, the Chinese are concerned with ownership and investment. Currently, one year deposits pay just 2.6% in light of 5.1% annual inflation, meaning the cost to borrow internally is effectively a negative 2.5%. That has allowed many within China to borrow, invest, and reap the proceeds of the current boom.

Investors are going to demand interest rate action at the Chinese central bank. To raise rates would essentially cut off domestic ownership of the economy, with foreigners still able to access developed world money for mere pennies on the dollar and bring it to China, stocking their cash in a currency that is not only inflating (allowing for real growth in equities), but also protecting against their own central bank action.

Investors are going to demand interest rate action at the Chinese central bank.

While there negative real rate opportunities in the developed world, there are few opportunities as beautiful as a near zero cost to borrow in a falling currency for investment in a growing economy with a rising currency.

China must soon act with interest rates which may bring about a temporary cooling. Expect, however, for foreign investment interest to front run any action by the Chinese central bank, since higher target rate means the Renminbi will only further gain against the currencies of the developed world.

Option trading brokers may be your best friend in processing your orders, but it’s not always entirely smooth behind the scenes. Here is a brief list your option trading brokers are unlikely to tell you.

1. Broker-Assisted Isn’t Better

Outside the few products that brokers won’t sell via your online account, there isn’t much use in making a “broker-assisted” trade. Typically, broker-assisted trades cost two to three times the average cost of making a trade through your options trading broker, but only provide a few advantages.

Of course, the biggest advantage for new traders is the chance to get some advice on a trade, but is it really worth the cost? Not always. Although stockbrokers do bring some experience to the table, the particular broker you speak to may know little, if anything, about the actual stock or option in question.

Most brokers employed by discount operations are generally just there to approve purchases of irregular products, such as OTC stocks and other equities that are sometimes disabled to clients.

2. Yes, You Do Qualify for this Promotion

Promotional products abound, and it’s likely that while you’re paying your option trading brokers $9.99 per trade, someone else is paying just $6.99. The best way to find out if you’re paying too much is to give your broker a call, explain the situation about their latest promotion, and see what they can do for you. Sometimes all it takes is a call to one of the many option trading brokers to get the best commissions or a better margin rate.

3. You’re Still Paying for Charts, But Your Friend Isn’t

Investors with accounts open at option trading brokers could still be paying for benefits and tools other investors are getting for free. When you open an account, you’re entering into a contractual agreement to open an account and pay for the tools the broker offers to you.

As such, investors who opened accounts years ago may be paying for tools they no longer use. These same tools could now be offered for free. In many cases, real time quoting previously came with a monthly price tag, but competition has driven option trading brokers to give it away for free.

4. Please Trade Less – We Make More When You Do

Commission schedules can get hairy, especially considering the sheer number of products investors can trade through a standard brokerage account. With that said, your option trading brokers may be actually charging you more for less due to their pricing structure.

For instance, traders who make 90 trades or more in a quarter may get reduced commissions. However, those who make 89 are still paying just as much, but they may actually save money by making a small trade and closing it immediately to cross the 90 trade threshold.

While your option trading broker may not divulge what occurs behind the scenes, you are now savvy enough to ensure that your account is truly working in your favor.

As the developed world countries struggle to enact austerity measures centered around entitlements offered to the aging group of people born during the global post-WWII boom, one BRIC country is moving on from its own demographics unevenness.

While we think of India as a populated powerhouse, one that will eventually house more citizens than mainland China, it is not the amount of people that matter, but rather the productivity an economy can derive from its population. As it stands, India and China have a very valuable natural resource: excessive amounts of usable labor, growing industrial bases, and incredible growth in productivity.

From Sustenance to Savings

The whole of India once suffered from the mark of poverty: sustenance farming. Where others go to work, produce more than they consume, and have savings to invest or enjoy, sustenance farmers produce only enough to survive, never accumulating investment capital. Of course, with only a modest amount of capital, say, a plow, sustenance farmers would likely have the opportunity to spend less time in the fields and more time on more productive pursuits. Such savings, however, were largely impossible to achieve due mostly to an explosion in dependency.

Up until the early 2000s, India’s aging population was exceedingly dependent on the younger working generations. The ratio between those dependent on others and those still working stood at nearly 70%, with seven people in “retirement” or too young to work for every ten in the workforce. Even without a “social safety net” as strong as ones found in the developed world, the strain is still felt across the board, particularly among families.

To best understand the problem is to compare it to the United States, where social security and entitlement concerns have exploded, even with a dependency ratio lower than India. In the United States, five people are dependent for every ten in the workforce. This important indicator will eventually bottom in India at a rate far lower than each of the BRIC countries, including Brazil, Russia, and China. In the next twenty years, India’s ratio will even plummet below 2010 readings for Vietnam, a country often touted as a place to invest due to its youngand hardworking society.

Accruing Capital

While the age of the population is often considered most important for government revenues and political stability, particularly in this age of austerity after decades of entitlement, India is a special case., and it now has a near army of web developers and programmers.

As India’s young age and the current elders pass on, India has the opportunity to truly save all that it has been producing for so long. In doing so, those who move their investment capital to India are sure to benefit, as infrastructure and modernization investments lend way for even greater increases in productivity.

Those who pay attention to history should remember what happened in England and the United States when they first industrialized. Their economies exploded, the movement was deemed a “revolution,” and in the years that followed, one maintained its superpower status (England) and another superpower emerged (the United States). Whether Indian stocks are bubbling or the growth models are unrealistic in the short term is largely irrelevant; the trend is in favor of a new economic superpower.

Investors like emerging markets because they offer easy GARP, growth at a reasonable price. Often, as in the case of Russia, political uncertainty provides for low earnings multiples, but positive macroeconomic trends allow for better than average growth.

Emerging markets offer growth at a reasonable price. No doubt, it easily wows investors.

Obtaining GARP, then, should be an easy process. Find the right area, drop your cash, and sit and wait. That kind of strategy has become more popular in the past decade, with emerging market funds and exchange-traded funds offering a one stop shop for exposure to the emerging markets. However, to afford this convenience, investors are giving up realistic exposure.

Investors pile into these funds thinking the fund is representative of the whole emerging nation, when it is, in fact, a play only on a few poorly weighted securities. These poorly weighted securities may not offer any real benefit in exposure to macroeconomic trends and emerging world success, but instead to industries and opportunities found (less expensively) in the developed world.

Brazil Has GARP

Brazil has been the definition of growth at a reasonable price. Its inflation is reasonable for an emerging market, growth coming out of the worst financial crisis in recent memory is reaching for 7% annually, and the government coffers are strong, as its taxes are the highest of the emerging markets. (High tax rates are a Keynesian tool for price stability and aid in soaking up hot investment money.)

With those fundamentals in play, Brazil ETFs and funds should be an excellent opportunity for foreign investment, right? Wrong! The most popular Brazil ETF and one of the largest ETFs on the market, the iShares Brazil ETF(EWZ), is perhaps the worst way to attack Brazilian growth. Nearly 75% (74.86%) of all the cash invested in EWZ is divided equally among three sectors: Industrial Materials, Financial Services, and Energy at 26.28, 24.70, and 23.78 percent respectively.

It doesn’t take much thought to realize the problem: all of the top holdings have exposure to markets that can be found in the developed world. Metal and energy prices are set worldwide on the New York, Tokyo, and London Exchanges, and financial services are dependent mostly on international growth. You could make the case that financials are directly connected to local markets, and they are, but banking profits in Brazil are (in normal market conditions) not much different than any other location.

Get Targeted

If you absolutely have to use an exchange-traded fund to access foreign markets, seek better targeting with an exchange-traded fund that picks the best part of each market. Emerging markets aren’t exciting because they have the same old economic fundamentals or industries as other countries; they’re exciting because the consumer class is developing.

A newly formed exchange-traded fund, the Brazilian Consumer ETF (BRAQ), offers much better exposure to the growth opportunity in Brazil. First and foremost, it weights consumer goods and services at 51% of the total fund, and it maintains less than 10% exposure to metals. Also improved are the exposure levels to media and healthcare services.

Finally, BRAQ takes the cake for being balanced in asset class with 31% large caps, 41% medium sized companies, and nearly 16% in small and micro cap stocks. With sector and geographic investing exploding, investors have fallen into the trap of buying a name, not an investment. Going forward, seek first the weighting, then the fund. Unfortunately, as in the case of EWZ, investors are buying expensive exposure to metals, energy, and financials that is hardly representative of the underlying Brazilian economy. Such investments are destined to under-perform when the true emerging market, the consumer market, finally shows its strength.

This is a guest article submitted by Patricia. She is an expert at reclaiming unfair bank charges.

Stand up to the banks and reclaim unfair charges

Millions of people across the world have been victims of unfair bank charges. But not all of them decide to fight back. Customers who were pressed upon with high charges (wrongly) by the banks have taken action and retaliated.

We often do not want to reciprocate simply because the procedures are long and time consuming. Yet, when the charges inflicted are high, it is more likely that one would want to reclaim them. If you have a similar problem, follow these simple steps and fight for your right. After all it is your money that is being ripped off.

Get your bank statements

Most of us are not updated with our bank statement figures. But the Data Protection Act entitles everyone with the right to get this information from your bank. Visit your local branch and ask for your statements.

Open a new bank account

It is wise to open a new bank account once to decide to reclaim unfair charges from your bank. This is because some banks close customer accounts after paying out compensation. If you have an existing overdraft facility, it should not be too much of a problem to get a new agreement with another bank.

Calculate the total charge

After you have collected your entire bank statements from your bank go through them and calculate the total charge. Note down the charged amount, date and time as it may be useful for future correspondence with the bank. Remember that precision is very important when it comes to dealing with the law.

Write to the Bank

Now when you have the figures (of the amount charged) with you, it is time to write to the bank mentioning about the unfair charges.Ask for compensation on the basis of your letter.

Give a reminder

If the bank does not respond within 14 days of your writing to them, write to them once again, reminding them about your concerns. This time warn the bank that you would take court action they do not respond. You can even write about this hassle in different magazines and people forums so that other customers are made aware of such situations.

Take help of court

If your bank does not respond even after your second letter, file for a court judgement. Go to the court and find out the procedure in order to reclaim your money.

The procedure of the bank acknowledging your request takes around 14 days after you register your concern. It might happen that the bank does not even acknowledge your request, implying that you have to directly claim through court asking for compensation for the entire amount.

The best way to stop banks swindling with your money is to avoid penalty charges. Do not miss payments, live debt free; do not go to banks which are known for harassing customers. A conscious effort can drive you to fight for your rights.

About the Author

Patricia is a finance blogger and debt management expert.

Spin off stocks are a great way to earn solid double digit profits in the market when the parent company decides to “spin off” a non-core business, thus creating a separate business.

The general definition is:

The creation of an independent company through the sale or distribution of new shares of an existing business/division of a parent company. A spinoff is a type of divestiture.

When a company wants to spin off an existing business, it must file a Form 10-12b through the SEC. We will search for 10-12b forms in Edgar Online to uncover these potential spin offs.

Find Spin Off Stocks in Just 3 Easy Steps

1. Conduct a search using Edgar
2. Type into the search box the following: form-type = 10-12b
3. Press Search and view HTML documents

If you need more help, please refer to the video explaining how to find spin off stocks.

More Spin Off Stock Resources

• SpinOff Advisors
• SpinOff Profiles
• Stock Spinoffs

Of all the countries making up the BRIC powerhouse, Russia is undoubtedly the most bi-polar. Very much like a bad relationship with a significant other, Russia is there for investors in the good times, but falls horribly off the radar in the bad times. During this decline and global recession, Russia has been nowhere to be seen.

When circumstances are pleasant or profitable, Russia's presence is felt. But was nowhere to be seen, during this decline and global recession.

The Confidence Discount

Russia has been, for a long time, a bit of a sore spot among the emerging markets. The country’s reliance on commodities has been hot and cold based on moving economic trends, and many investors still worry that political disruption or involvement in business may negatively affect their holdings. Even to this day, Russia remains one of the biggest investors in itself, with the government holding substantial stakes in oil and gas producers, as well as various other behemoths that dominate the Russian commodity trade.

To many, the Russian discount is not immediately visible. Russian stocks have advanced in 2010 on improving commodity prices and a minute rebound in demand from the developed world, but the best indication that investors are discounting Russian stocks comes from the limited upside in price to earnings multiples. Ratios have plummeted this year as earnings increase at nearly three times the pace of the price to earnings multiple, and Russia remains the least expensive of all BRIC nations.

It isn’t as if Russian stocks are upping their dividends. They aren’t, and the yields in much more stable commodity-based economies, including Canada, are far more appealing to investors still stiff with their investment dollars.

BRIC’s Black Sheep

Unlike Brazil, India and China, Russia lacks a very important piece of the economic puzzle: a strong internal demand for consumption products. In the latest fiscal year, oil and gas exports helped boost GDP by as many as four points over last year, but both investment and consumption stagnated.

With four percent year over year growth forecast for as far as the eye can see, Russian companies simply don’t have the appeal of Brazil, India or China. Plus, as each of the three other nations become more economically free, the Russian government merely toys with the thought, offering up only small sales of government owned companies to shore up a current budget deficit. Compared to a near 180 shift in Chinese policy within the last two decades, Russia’s move to economic freedom is hardly a blip on the radar.

In fact, as the government sector as a percentage of GDP declines in both India and China, and stabilizes in Brazil, government continues to grow in Russia. This growth of government, however, is not a matter of stimulus as it was in India and China in 2009, but instead due to the shrinking size of the private economy.

Prominent investors have declared Russia a long-term value play with forward price to earnings ratios leveling off at a reading of seven. However, without large institutional changes regarding the role of the government in the marketplace, or increases in dividend yields, investors are far more likely to head to Brazil, India or China, slapping a ceiling on any future multiple expansion and share price gains in Russia.

Through the real estate bubble in the United States, as well as the resulting global financial crisis, China remains the go-to country for a perfect carry trade.  While the carry trade is traditionally an operation of the foreign exchange market, China’s economic fundamentals, coupled with central bank activity, make it a prime investment for investors living in developed economies.

As to why China is so attractive to foreign investment, no one should question that.

Battling Bankers

Currency manipulation is a word perhaps now better attached to Ben Bernanke than it is the People’s Bank of China.  Since John Snow, Treasury Secretary under George W. Bush, first charged the Chinese as being currency manipulators, the People’s Bank of China has fought long and hard to allow their currency, the Renminbi, to appreciate.

China is now working to strengthen the value of the Renminbi by tightening monetary policy through the People’s Bank, while Bernanke, intent on lowering the value of the US Dollar against emerging nations, is injecting fresh cash directly into the reserve level at the banking system.

More simply, reserves in China are increasing as cash is sucked out of the economy, while reserves in the United States are rising as a result of direct cash infusions into the economy.  China has routinely made the charge that “hot money” borrowed in the United States is pouring into local markets and investments, and frankly, there is little doubt they are correct.

The Trade of A Lifetime

There should be no question as to why China is so attractive to foreign investment.  Consider first that the United States’ monetary policy is currently providing for negative real interest rates, where the rate of inflation is greater than the cost to borrow.  This is the reason why commodities are on a tear; simply storing borrowed cash in a safe place provides a very consistent increase in real purchasing power.

While a play on the Renminbi isn’t as attractive as it once was (the Renminbi now trades 6.75 to the dollar from 8.25 to the dollar), it is absolutely more attractive than commodities, especially when investors glance into the final element of Chinese investment dominance: its unparalleled growth.

Going into the end of 2010, China is expected to grow some 8.5% next year, while inflation at the production level (the prices that most affect local consumers) grows by only 3.5%.  Those numbers set the stage for a nation that will soon become one of the largest consumer markets in the world, rivaling the European Union and the United States.

Emerging market investors with current open positions in China have seen impressive gains from export-driven growth, but no one has yet to see the power of an internal consumption machine. Estimates suggest that in the coming years, the Chinese savings rate will drop as social security payments increase, and the population ages and eases into retirement. However, for China, that isn’t a problem.  Its status as one of the leading exporters suggests that it has not only a comparative advantage in production, but that it maintains a comparative advantage, even with the ever increasing costs of international transport.

When all these years of savings are spent, mostly internally, foreign investors should be there to pick up the profits.  It won’t be much longer until China capitalizes on years of hard work, savings, and a move to pure, raw capitalism.  Those who embrace capitalism in the Chinese financial markets will reap the rewards of earnings growth, multiple expansion, and general capital appreciation against the miniscule opportunity costs of cheap credit borrowed and slow growth in the developed world.