But there's a problem.

If you're an income investor, then China and India are terrible places to search for high yields.  For the most part, companies in these two emerging markets pay little or no dividends; they're too busy reinvesting cash into their businesses or acquiring competitors as they strive to keep up with the surging economy.

So, how can income investors take advantage of economic growth in these markets, yet still lock in solid dividend yields?  The answer is simple — invest in other Asian countries that are directly benefiting from the economic boom in China and India.

Asian Countries Deliver Big Gains

Not surprisingly, stocks in surrounding nations like South Korea, Japan and Singapore have delivered strong returns in recent years.  The table below tells the tale, and the same phenomenal growth story applies throughout the rest of Asia.

As you can see, by and large, all of Asia is enjoying an economic boom — thanks in no small part to what's happening in China and India.  As these two economies have grown, trade with their neighbors has picked up, leading to increased demand for natural resources and other important exports from surrounding countries like Singapore and South Korea.  This has fueled strong economic growth throughout the entire region.

And while the pickings are slim when it comes to high-yield stocks in China and India, many surrounding countries are loaded with high-quality dividend payers.  Best of all, thanks to solid economic growth in the region, these dividend-rich firms are generating strong cash flows — cash they're returning to shareholders in the form of steadily-growing dividend payments.

Enter:  Singapore

Although a number of Asian nations look promising in today's environment, Singapore remains one of my absolute favorite high-yield hunting grounds.

A tiny city-state made up of 63 islands but with a geographic size of just 272 square miles, Singapore masquerades as a geographic midget, but in reality it's an economic giant.  The country has a population of less than 5 million and is less than half the size of Los Angeles — Singapore is really a city-state.  But the country is one of the most business-friendly and efficiently run nations in the world.  It's also a a developed market with a high standard of living.  On a per capita gross domestic product (GDP) basis, Singapore ranks above such countries as Spain, Portugal, and Greece and just behind Italy, Australia, and Canada. 

The government recognized early on that it can't compete with China on labor costs for manufacturing.  Nor can the country compete with India on price when it comes to certain services.  Singapore instead re-focused its economy on high value-added industries such as financial services and technology.  As a result, the country has become a key banking and financial services center within Asia, and it remains one of the highest-volume currency-trading centers in the world.

And the nation is taking steps to make sure it maintains its competitive edge. Singapore has eased labor laws, making it easier for needed workers to emigrate there. Singapore has also enacted legislation to reduce its corporate tax rate to 18% starting with the 2008 tax year; soon its taxes will be among the lowest in the world.

Meanwhile, Singapore's enviable position at the intersection of various shipping routes has made its port one of the world's busiest for 300 years.  As a result, Singapore's so-called "entrepot" industry — duty-free importing and exporting out of the same port facilities — provides the nation with a significant source of income.  And thanks to Singapore's proximity to fast-growing Asian markets like China, the nation is one of the biggest beneficiaries of booming Asian trade.

Singapore's real estate industry is also in the midst of an incredible expansion. With limited space, developers have constructed thousands of new homes, but values have still shot through the roof, as demand has outstripped supply.  The same scenario has also unfolded in the market for office and industrial space.

Looking at the overall picture, Singapore's economy is soaring.  The nation's gross domestic product has increased +6-8% annually over the past four years, with +6.5% growth expected in 2008 — faster than almost every other developed economy in the world.  If it manages that rate, then the country's stock market should continue to deliver robust returns.

Of course, if you've been following Singaporean stocks, then outsized gains are certainly nothing new.  The tiny city-state has been one of the world's best-performing markets over the past five years . . .

The MSCI Singapore Index has skyrocketed over +200% since 2003, delivering annualized gains of +27.6% and trouncing the S&P 500 by a 3-to-1 margin.  I expect that outperformance to continue in the coming years thanks to the implementation of business-friendly reforms, as well as strong demand for exports to China.

Capturing Above-Average Yields in Singapore

There are many compelling reasons to invest in Singapore.  Aside from strong economic growth, the nation is also delivering abnormally high dividend yields.  The average Singaporean stock is now yielding about 3.5% — nearly 2X the level seen in the U.S.  And remember, that's just the average — many individual stocks in Singapore are now dishing out yields of 6%, 8% . . . even 10% or more.

In the most recent issue of my premium newsletter — High-Yield International — I went in search of high yields in Singapore, as well as several other attractive nations in Southeast Asia.  In the process, I profiled some of my favorite high-yield picks in the region, including a fast-growing company that is scooping up some of Singapore's most valuable real estate.  Thanks to strong economic growth, real estate prices and rental rates are booming, helping this firm deliver +49% revenue growth and an impressive 9.0% dividend yield. 

If you'd like to learn the name of this high-yielding Singaporean real estate play — plus receive a steady stream of foreign stocks, funds and other investing ideas with abnormally high dividend yields each and every month — then I'd like to extend you a personal invitation to try my premium international investing newsletter — High-Yield International.  Visit this link to learn more.

While a series of sobering economic reports have battered the major market averages over the past few months, not all investors are complaining. In fact, those that have put their money in gold have actually enjoyed intoxicating gains.

Spurred by a volatile mix of factors including soaring crude oil prices and rising inflation, a tumbling dollar, and even supply disruptions in South Africa, prices for the shiny yellow metal have soared to record highs — flirting with the lofty $1,000 per ounce level this past week.

In times of geopolitical instability or economic uncertainty, investors often turn to gold as a classic hedge, particularly when inflation is on the rise. With all this in mind, Paul Tracy, editor of our StreetAuthority Market Advisor newsletter, went panning for gold stocks in his November 2005 newsletter.

At the time, gold prices were languishing below $450 per ounce. But with inflation building, the dollar falling, and GDP growth already showing hints of a slowdown, Paul felt the time was right to begin exploring gold — and prices have more than doubled since.

Of course, some companies were far better positioned than others to take advantage, and Paul recommended Compania De Minas Buenaventura (NYSE: BVN, $75.77). The Peru-based company was sitting on some of the richest mines on the planet, and its extraction costs were well below industry average — a key competitive advantage in a commodity industry with no pricing power.

The company was also teaming up with larger companies like BHP Billiton (NYSE: BHP) on new joint development ventures. Yet, despite robust earnings growth forecasts of +40%, the shares were trading at one of the most attractive valuations in the industry. Paul singled out the stock and gave it a "Buy" rating at an initial price of $24.64.

And since then, the shares have turned in a glittering performance, jumping all the way to $75 — a gain of +204%.

In this month's Market Advisor newsletter, Paul has unearthed another promising miner that is cashing in on the global commodities boom. The company is a leading producer of industrial metals like copper and zinc — whose prices have soared thanks to surging demand from China and other emerging markets. The firm is aggressively planning to step up its production over the next few years, but like BVN, its shares are still trading at a sharp discount.

To learn more about this stock, which Paul believes could double from $40 to more than $80 per share, please follow this link.

Top Five Industry Movers Over The Past Month