As the rest of the world appears to be going down with the U.S. markets, Malaysia and its exchange traded fund (ETF) have been able to stay afloat.

iShares MSCI Malaysia Index (EWM) is up 15.5% in the last three months. The nation has climbed 7.5% year-to-date, passing the MSCI EAFE index by 13.69%, so says Trang Ho for Investor’s Business Daily. This follows a 45% hike in 2007, and a 36% jump in 2006. Gary Gordon for ETF Expert says he recommends it for those with a high tolerance for risk, and the ability to manage downside risk through the use of stop-losses.

Malaysia’s earnings, relative value, cash holdings, monetary policy and risk are very bullish relative to other emerging markets and bonds. It is the 19th-largest trading nation in the world, and can boast that the global credit crunch has not scathed the independent nation.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.