Although worries about heightened systemic risk in China’s financial system appear legitimate, the People's Bank of China made its point loud and clear when it allowed the overnight Shanghai Interbank Offered Rate to spike on June 20. Here's what it means for investors.
With exchange-traded funds still selling bullion and India's gold demand under pressure, investors shouldn't regard growing concerns about the global economy as a cue to pile into the yellow metal. Freeport McMoran Copper & Gold's (NYSE: FCX) low production costs and above-average dividend yield make the stock a solid bet for deep-value investors with a longer time horizon.
Investors with a longer time horizon should take advantage of periodic weakness to build positions in inexpensive markets that offer real upside potential. Asia’s emerging markets fit the bill on both accounts.
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