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Market Watch Africa’s Economic Powerhouse
Market Watch Africa’s Economic Powerhouse 
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Fellow Investor, At 2:15 pm EST today, 10 Washington, D.C. bureaucrats –- led by Ben Bernanke –- will make an announcement to cut the Fed rate by as much as 50 basis points... Yet, while all eyes are on the Fed, my subscribers are poised to profit no matter what. Why? |
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| Africa’s Economic Powerhouse |
| Tuesday, 16 October 2007 | ||||||||
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The West doesn’t have a monopoly on bull markets, political stability, and disciplined fiscal policies. A country in Africa has been enjoying all three for the past few years. It’s the undisputed economic powerhouse of Africa – the country of South Africa. As a percent of Africa’s total output, South Africa accounts for about a quarter of GDP, 40 percent of industrial output, and 50 percent of electricity generation. Its government has also reduced levels of external debt and built up foreign exchange reserves.
Taking a look at the chart below, it’s evident that the South Africa iShares ETF (EZA) is trending strongly upward. The RSI initially looks overbought, but it really isn’t. At the end of 2004 and the beginning of 2006, you see the RSI rising higher than it is now – above the 70 level for a few months at a time. If past patterns hold, EZA’s current leg up still has a few months to go before running out of steam. Africa is the last investment frontier. And big and fundamentally strong South African companies are picking up assets throughout the continent. If you want to make a play on Africa, this ETF is one of the safest ways to go. P.S. To let me know what you thought of today's article, send an e-mail to: \n This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
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