Emerging South

Belgian financial analysts have always been somewhat pathetic when it comes to making predictions.  This year, things are no different.
Patrick Casselman breaks all records though.  First he wants you to go for the Nikkei; he believes it will be the best performing index in 2008 !  And at the same time he wants you to diversify into the Bel20; he is convinced it will break through 5.000 points.

Let's say Patrick buys  50% into the Nikkei and 50% into the Bel20.  Good luck.  Me on the other hand, I'll buy for simplicity's sake 50% Petrobras shares and 50% shares of Companhia Vale do Rio Doce.  Don't be mistaken, I think there are many more juicy picks to make, especially when you eye into ETFs. But I wanted to make a plain simple pick of two Brazilian companies which already made me a monster return in 2007: Petrobras went up from 41,38 to 119,16 and Rio Vale Doce went up from 13,53 to 38,32.    Yes, that is a return of 284% if you bought 50% PBR and 50% RIO.   You have to augment his yield with an extra 10% I made on the EU versus R$ exchange; the Real went 10% up against the strong-performing Euro.
I wonder what Patrick's December 2006 picks yielded in 2007.

And for stupidity's sake I'll hold on to those 2 Brazilian stocks.  Sure, they won't yield 284% this year. But still I'm convinced that by end 2008 I'll make double the amount of money of compared to Patrick's Nikkei and Bel20 advice calls.  I'd rather bet on Brasil than Belgium or Japan.