Beating the Dow by More Than Six to One!

Martin here with a brief review of global markets for 2009 and some basic thoughts regarding the risks and opportunities in 2010.

As we have been writing for many years, and as we highlighted in our Weiss Global Forum this past summer (click here for transcript), key emerging markets are — and should continue to be — greatly outperforming the Dow across the board.

Starting at the close of trading in 2008 and excluding the last few days of trading this year which are still to come …

• If you had invested $10,000 in the average Dow stocks, you’d now have a gain of $1,640 for the year. Meanwhile …

• If you had invested that same $10,000 in FXI, a leading ETF which tracks China’s blue chips, you would have made more than twice as much, with a gain of $3,613, and …

• With the ETF tracking Brazil’s leading stocks (EWZ), you could have put all of the above to shame — achieving a gain of $10,117, or over SIX times more than the Dow.

I hasten to add that no investment is risk free, and emerging market stocks can be especially volatile — the reason we have always approached them with caution.

But the fundamentals have clearly supported — and continue to support — this huge outperformance:

In the U.S., despite the biggest fiscal and monetary stimulus in our lifetime, the economic recovery remains one of the weakest in the world.

It’s bogged down in a morass of defaulting mortgages and bad credit cards.

It’s more dependent than ever on stimulus from a government that is already running the biggest budget deficits of all time.

And, as I detailed last week in “Three Government Reports Reveal New Looming Risk,” even this disappointing performance could be threatened by an interest-rate rise in 2010 for which few are prepared.

China has just become the world’s second-largest economy, leaping ahead of Japan, which had held this distinction for nearly half a century.

For 2008, the Chinese government has just revised its official GDP growth figure from the already-high 9 percent estimated previously to a 9.6 percent. And for 2009, the government says the economy grew 8 percent — a number that’s also likely to be upwardly revised next year.

That will put China’s GDP at close to $4.75 trillion, compared to $4.6 trillion in Japan. And if you adjust these figures for the far higher cost of living in Japan, China’s economy is $3.5 trillion larger than Japan’s.

India is not far behind: Since 2003, it has chalked up an impressive growth, averaging 8.5 percent annually. This year, despite the global crisis, its growth is likely to come in at over 7 percent. And right now, it’s already gaining momentum for an expected 8 percent expansion in 2010.

Brazil, in my view, is the strongest BRIC country.

Brazil’s banking system boasts not only better stability than that of the other BRIC nations, but also of the U.S. and Western Europe. Its central bank is one of the few in the world that has strictly applied the higher capital standards recommended by the Bank of International Settlements — not only for high reserve requirements, but also for reduced risk taking.

Brazil has enjoyed a democratic multi-party system for 25 years, with two strong parties taking turns governing the country, and, remarkably, with the world’s most advanced computerized election system.

Most important, Brazil’s recent growth has been largely fueled by a dramatic expansion of the middle class and a reduction in the poverty rate. Tens of millions of citizens who were outside the economy — without a penny of savings or even a formal address — now have steady income, bank accounts, credit, cell phones, and most important, the ability to consume.

These are not structures or trends that change overnight. They promote sustainable growth. And they should give global investors the opportunity to again greatly outperform those who are confined to the U.S. markets.

These are just some of the areas we’re going to focus on in our first-of-the-year teleconference — just ONE of the special benefits of our inner circle, The Weiss Elite.

The absolute, immutable deadline for joining The Weiss Elite is December 31.

In other words, you now have only three days to go for the biggest-ever savings and profit bonanza in my company’s history.

The advantages are virtually unlimited:

Advantage #1. You will receive EVERY core investment service my company publishes for far LESS than others will pay for them just for a SINGLE year. No options! No futures! No in-and-out trading! Just investments that you can put into a regular brokerage account or even an IRA.

But instead of getting these services for just ONE year like everyone else, you will get them FOREVER — for as long as we publish them!

Advantage #2. High-level access. You get the ultimate in access to my top analysts and to me as well: The Weiss Elite is the exclusive and intimate group of our very best friends. It gives us the chance to spend time together throughout the year — in person at The Money Show, on the phone during special members-only briefings, and in more intimate meetings online.

Advantage #3. The best of the best. You get ongoing, expert help to continually select our services and recommendations that offer the best historical performance and profit potential.

Advantage #4. WeissTV. You get exclusive, members-only access to the wealth-building power of WeissTV: This exciting new service brings our members regular briefings on your PC.

Advantage #5. A major jump on 2010 opportunities. Provided you activate your membership by December 31, you’ll also get full and free access to the investment recommendations we’re releasing on New Year’s Day.

Advantage #6. Huge immediate savings. Equally important: If you join before December 31, you reap an immediate savings of $492. Then, by year two, you will have saved $1,554. By year three, you will have saved $2,616. And by the tenth year, you will have saved $10,050.

Even if you use only our services that meet your individual needs … and even if you can only do so for a couple of years, your savings on subscriptions and renewals are huge!

Advantage #7. Your membership NEVER EXPIRES! You’ll continue to receive these services FOREVER with ZERO subscription costs and ZERO renewal costs. Your sole annual cost will be a tiny maintenance fee of just $25.

Advantage #8. You will also get new services we introduce — with no membership or subscription fees whatsoever.

Advantage #9. Your membership is fully guaranteed: Join now. Then take three full months to judge The Weiss Elite for yourself. You must be thrilled with your membership or simply cancel within 90 days for a full, 100% refund of your entire membership cost.

Two Necessary Limitations to This Offer:
1. Only for Our Loyal Readers
2. Expires Promptly December 31, 2009

Needless to say, a generous give-away of this magnitude has a mixed impact on our business. So I have imposed two necessary limitations:

First, it is available exclusively to our loyal readers. It is NOT being offered to the general public.

Second, this offer is limited time-wise: It expires promptly on December 31, 2009!

So if you want to reap an IMMEDIATE savings of $492 on your forever membership in The Weiss Elite — AND ALSO get the best-of-the-best investment recommendations we’re going to release on January 1, you have only three days to join.

Call our VIP member hotline at 866-633-3024 (+1-561-627-3300 from overseas), or click this link.

Or for more details on your membership benefits, simply click here.

Good luck and God bless,

Martin