Global expert eyes China real estate ETF

Posted Aug 3rd 2009 2:00PM by Steven Halpern
Filed under: International Markets, China, Newsletters, Stocks to Buy, Housing

"Claymore/AlphaShares China Real Estate ETF (NYSE: TAO) combines two prominent investment themes in one" says international specialist Nick Vardy in Global Bull Market Alert.

"Here's why I think this ETF is set to soar over the next few months. First, the fundamental case for real estate in China is compelling. Over the next five years, 1.5 billion square feet of space will be built in China.

"China is also booming, and is leading the global economy out of recession and looks set to hit its full-year growth target of 8%. Real estate investment already makes up 10.2% of China's GDP. And that proportion is rapidly growing.

"Second, the Chinese stock market has been one of the top-performing markets of the world this year, holding up well even through the recent correction. But the real estate sector has been an even more impressive outperformer.

"The Shanghai property sub-index has jumped about 160% this year, beating a 75% surge in the benchmark Shanghai index.

"Favorable government policies such as cheaper mortgages and lower down-payments for buyers have lifted housing prices in 70 major Chinese cities since March.

"The past few weeks have also seen a steady stream of property firms eyeing IPOs, bond and share placements in anticipation of a real estate recovery. And with the bullish factors behind the boom expected to persist for a year or more, there is plenty of upside left.

"And for full disclosure, this is a position that I hold on behalf of some of my clients at my investment firm Global Guru Capital."

Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.

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