Looking for a way to play China? Check out Potash

While investors still hunger to capitalize on the double-digit growth in China, as well as strong growth in emerging markets like India, Russia, and other Eastern European countries, many have turned somewhat gun-shy when it comes to investing directly in those countries firms. With many speculating that we will see the market bubble pop in China, and the boomerang effect that will have for all emerging markets, the question becomes, how to still profit form the growth without getting caught up in the stock market bubble. The answer is look at fertilizers, notably Potash Corp. of Saskatchewan (NYSE: POT). The Canadian company is the world's largest that specializes in potash, a form of potassium carbonate, as well as nitrogen and phosphate.

With emerging economies booming, citizens have exited the cycle of poverty and joined the middle class. As such, with much more disposable income, they have changed their standard of living and are consuming much more meat than anytime previously. This means that as more and more cattle are raised, more and more feed is needed to feed the animals, which means more fertilizer is needed to help grow the feed.

Potash stock has grown faster than a weed this year. Even so, with fertilizer prices continuing to move higher, plus the boost in the U.S. as farmers have changed over their crops to grow ethanol, Potash is poised to keep growing well into 2008.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 12/20/07.