Vietnamese stocks have broken out to 2010 highs in decisive fashion – as measured by the Market Vectors Vietnam ETF (VNM):
There is some speculation that some hot “quantitatively eased” dollars are flowing at a brisk pace into emerging stock markets. And Vietnam, being a laggard in the reflation trade, is now playing a bit of catch up ball.
If you’re into demographics, you’ll appreciate the up and coming youngsters that Vietnam boasts. In fact, it was demographic expert Harry Dent’s #1 pick for favorable demographics over the next 15-20 years.
Dent believes that demographics are THE key driver of stocks. When he spoke to us back in September, he expressed a lot of bullishness towards Vietnam and the rest of Southeast Asia for this reason (while expressing bearishness towards the US, Europe, and Japan).
The ETF ticker is VNM if you’d like to take a flyer on Vietnam. Over the longer haul, I’d have to think a pair trade that is “long Southeast Asia, short US/Europe” would work out quite favorably.
Hat tip to Jonathan Lederer, President of Lederer PWM, for giving us a heads up on the merits of Vietnam!