Gin Joints and Happy Returns

Finally, it seems, the world can agree on one thing: sell equities.

Global stock markets have taken a beating in these first few weeks of 2008 as fears of a U.S. recession loom. Year-to-date as of yesterday, almost all of the global equity indices tracked by Standard and Poor's were down. The U.S. index was down 11 percent, China's had shed a quarter of its value, and Russia's was off by 16 percent.

But there is one tiny corner in the world where your stock portfolio could have grown by 5 percent so far this year: Morocco.

The S&P/Citigroup Global Equity Index for Morocco is up 5.34 percent this year. The only other of the 52 indices that has escaped the attack of the red ink is Nigeria's, which has recorded a 0.5 percent gain.

Why is Casablanca so hot?

For starters, the Casablanca Bourse has a small universe of stocks--71 in all, with a total market value of $77 billion. And the S&P index for the country is even tinier--companies must meet certain market cap and trading volume criteria in order to be included. The Morocco index includes just 8 companies.

It also helps that the biggest public company in Morocco is doing quite well. Moroc Telecom, with a market value of about $19 billion, said earlier this week that 2007 sales surpassed expectations, buoyed by recent acquisitions and more mobile subscribers. Its shares have surged 15 percent this year, according to Bloomberg.

And unlike in the U.S., the economy in the North African country is growing at a healthy clip, thanks to a prosperous tourism industry and increased foreign investments from Gulf nations. Last August, the U.S. chipped in as well with a $700 million economic package.

Morocco, of course, still has its fair share of challenges. Terrorism and corruption remain primary sources of concern in the country, and the bifurcation between the country's rich and poor is a growing issue.

But in the first 22 days of January, the world's markets lost $7.9 trillion while Moroccan investors earned approximately $3.7 billion.

At the very least, that achievement deserves a toast. Here's looking at you, kid.

by Megan Barnett