"There are signs that the credit logjam that's frozen markets around the world in recent weeks may be breaking," states global expert Keith Fitz-Gerald. In his Money Map Reporter, he suggests that investors begin scaling in to new positions in Templeton Emerging Markets Fund (NYSE: EMF).
The advisor explains, "Assuming historical relationships remain true, Asian markets, followed by South American and European markets -- in that order -- have the most to gain coming out of this crisis.
"The other thing that history shows is that deep corrections tend to turn out to have been spectacular buying opportunities in retrospect, particularly when the credit markets that drive them relax. This is usually about six months prior to recognized recoveries.
"Templeton Emerging Markets Fund is trading at a 12% discount to net asset value and offers a 16.9% yield. Fully 58.2% of its assets are concentrated in and around the Asian region, which is running the highest cash reserves as a percentage of GDP on the planet.
"We plan to scale into a position in Templeton Emerging Markets Fund over the next few months. This not only keeps our overall risk down, but it helps us average in cost effectively."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Five winners of a weak dollar
For a quick-read on the U.S. economy, check the price of gasoline
Closing Bell: What Friday 13th curse? (ANF, BA, GENZ, DIS, PALM, PLA)
Reader Comments (Page 1 of 1)
11-26-2008 @ 11:25AM
Bill Smith said...
According to Morningstar the yield is 0.65%
Your figure of 16.96% is possibly based on last year's distribution that include strong capital gains.
The current discount is 10%
11-27-2008 @ 10:38PM
Rex said...
You'd better check your figures. My information has EMF yielding 1.28%