| Vietnam has invested heavily in educating its young people in STEM (science, technology, engineering, and mathematics) and English, a sure sign that it intends to be a big player in globalization. As the U.S. and China continue their bickering, this small, but fast-growing country is a prime candidate for companies seeking alternative suppliers and places of manufacturing. As an example, through the first six months of 2019, Vietnamese exports to the U.S. have increased by a whopping 33%. The demand is so high that Vietnamese companies are reportedly turning down orders because they aren't equipped to handle the scale of the work. In fact, capacity constraint, as well as a still under-developed infrastructure, are a major challenge for Vietnam. These factors are keeping the economy from growing even faster. However, foreign companies see the opportunity in Vietnam and they are investing. Especially if the U.S.-China trade war drags on, the money will flow into Vietnam and help it to continue to develop and handle the growing demand. Readers interested in investing in Vietnam can consider Vietnam-specific exchange-traded funds (ETFs) such as VanEck Vectors Vietnamese ETF (VNM). Mexico Our immediate neighbor to the south, Mexico, has replaced China as America's largest trading partner in the first half of 2019. U.S. companies that want to avoid the high tariffs of Chinese imports see Mexico as a natural alternative because it's so close. Some Mexican products that have enjoyed a major jump in U.S. demand include electronic commodities like wires and fiber optic cables. President Trump has threatened Mexico with additional tariffs as well, but Mexico has been far more willing than China to compromise. Mexico's moves to appease Trump over the past year include signing a new trade agreement to replace NAFTA and pledging to do more to reduce the flow of illegal immigrants. Despite some problems with corruption and organized crime, Mexico is one of the most business-friendly countries in Latin America. Look for Mexico to be another beneficiary of the trade war. One way to invest in Mexico is via the ETF iShares MSCI Mexico ETF (EWW). Brazil China has said that it will stop buying U.S. farm products entirely. But it has to get food from somewhere, and Brazil is one of those places. Brazil is the largest exporter of soybeans to China, with the demand jumping 30% in 2018 and accounting for about 75% of China's total soybean imports. Meanwhile, soybean imports from the U.S. fell by almost 50%. Soybean, cotton, and maize account for about 70% of total Brazilian exports to China, but Brazil thinks that over time it will become more diversified. In about a dozen years, processed foods like packaged meat could make up half of Brazil's exports to China. In recent years, China has poured money into Brazil. Most of that focused on food and energy, but China has also invested in telecom, auto, and renewable energies. Even if the current trade war between the U.S. and China ends soon, China will surely look to get even closer to Brazil. Brazil is still emerging from a bad recession brought on by unwise government policies, and deepening ties with China would make a lot of sense. Readers interested in Brazil can check out iShares MSCI Brazil ETF (EWZ). The above three countries insulate your portfolio from the trade war. They also allow you to profit from it. But what if you're looking for profits that are immune to the tariff fight and other sources of uncertainty? My colleague Jim Fink can help. Jim Fink is the chief investment strategist of Options For Income, Velocity Trader, and Jim Fink's Inner Circle. Jim has fine-tuned a proprietary but very simple investing technique that generates steady income, in up or down markets. Jim's trading system couldn't care less about the trade war or even the looming recession. Jim's returns are so reliable, they look just like a paycheck. With his system, you can get regular deposits of $2,950 or more, every Thursday. We explain exactly how this simple moneymaking technique works, and what you need to do to earn your first "paycheck" using it. Click here for all the details. |
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