Why I believe one should have exposure to these two.
The U.S. monthly international trade deficit decreased in March 2014 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit actually decreased from $41.9 billion in February (revised) to $40.4 billion in March as exports increased more than imports. This recovery in the US economy is showing signs of shifting trends that are rather significant for the rest of the world. The goods deficit decreased $0.6 billion from February to $60.7 billion in March; the services surplus increased $0.9 billion from February to $20.4 billion in March. This is reflecting the capital shifts on a global basis as services are now rising. Source; http://www.bea.gov/newsreleases/international/trade/tradnewsrelease.htm
This is the emerging real trend; however, capital is still confused. There is more than $25 trillion globally in bonds (short/long) and that is a huge reservoir of capital to shift. This idea that government debt is “quality” will give way to reality. The Central banks of the world have tilted reality, for now… That means we will see tangible assets rise precisely as we see during a hyperinflation within a peripheral economy.
The daunting question is formulating when the cycle will fully flip from Public to Private.
We are entering this phase now slowly.
Just as I think the United States will become a magnet for frightened capital coming out of Europe, Japan and Russia. In Asia the magnet will be Singapore.
Perhaps the strongest economy in Asia right now is Singapore. Year-over-year, its manufacturing sector grew by 8.0 percent, compared to the 7.0 percent expansion in Q4 last year. The construction sector grew by 6.5 percent on a year-on-year basis in the first quarter, an improvement from the 4.8 percent growth recorded in the previous quarter.
The Singapore government reiterated its forecast for the economy to expand 2 percent to 4 percent this year, and for non-oil domestic exports to increase between 1 percent and 3 percent. The island’s manufacturing grew 11.9 percent in the first quarter from the previous three months, compared with an April estimate of a 4.5 percent expansion. Services rose 0.4 percent in the same period, while construction increased 0.6 percent.
While retails sales and the service sectors show some signs of slowing, Singapore’s economy is a bastion of stability and moderate growth, a stable and strong currency, and an economy that is not overly dependent upon foreign debt. http://www.bloomberg.com/news/2014-05-20/singapore-gdp-grew-more-than-previously-estimated-last-quarter.html
This ETF offers you exposure to Singapore’s large and mid-sized companies and seeks to cover most of Singapore’s stock market, with holdings such as Singapore Telecommunications, DBS Group, CapitaLand, Jardine Group and more.
I suggest you have some exposure to Singapore and an easy way to do this is with iShares MSCI Singapore (EWS) (I would wait and hopefully buy in on a dip around $13.5)also the DOW using DIA SPDR Dow Jones Industrial Average ETF (I would wait and hopefully buy in on a dip around $155)