George Putnam
The Turnaround Letter
Geoffrey Seiler
Bullmarket.com
Chuck Carlson
The DRIP Investor
Nicholas Vardy
Bull Market Alert

Cabot targets emerging markets


Bookmark and Share

 "We’ve long been fans of emerging market stocks," says Timothy Lutts. In The Cabot Market Letter the advisor highlights some of his favorite bets on global stock markets.

"We are attracted to emerging markets for one simple reason—the economies of countries like China, Brazil, India and others are almost assured of growing at a faster rate in the years ahead than the U.S.

"We also think investor perception of emerging market stocks is sure to rise over time, as people get more comfortable with the idea that these countries are stable and have acceptable governments.

Advertisement
Banner

"Of course, when fear overwhelms greed, as it did during the bear market, emerging market stocks can be a terrible place to invest; most fell 75% from peak to trough!  But now, as the world economy is showing signs of bottoming out, money is once again finding its way to the fastest growing places on the planet.

"The iShares MCSI Emerging Markets Fund Index (ASE: EEM) gives a good, broad perspective of the emerging markets. It etched a big bottom in the 18-20 area and has decisively moved to new multi-month highs recently.

"Importantly, the rising relative performance line versus the S&P 500 is also at new multi-month peaks, a sign that buyers are buying these stocks more eagerly than U.S. big caps. Long story short, if this bull market persists, expect emerging markets to help lead the way.

"How can you make money from them?  The simplest way is to buy a broad fund that tracks one or more emerging markets, such as EEM. 

"A couple of others to consider are the Brazil iShares (ASE: EWZ) or the Powershares Golden Dragon Fund (NYSE: PGJ), which tracks the performance of all U.S.-listed Chinese stocks.

"You can also go into individual equities; we’re high on the Chinese online gaming sector, with two pure plays in the Model Portfolio -- NetEase (NASDAQ: NTES) and ChangYou.com (NASDAQ: CYOU).

"There are also many potentially exciting commodity-related stocks found in Russia and Brazil. Much of the marginal demand in oil, copper, steel and even gold is being driven by emerging market economies.

"Thus, the DB Commodities Index (NYSE: DBC), while not showing much accumulation is something to keep an eye on.

"Emerging market stocks were some of the biggest winners of the last bull market, and following the bear market wipeout, they’re beginning to act like leaders again. Don’t ignore them!"


News Flash

Goldcorp: 'My favorite major'
by Curtis Hesler, editor Professional Timing Service

The secular bull in gold and the commodity sector is not over. However, it is not at the ground floor any longer either; as such, stock selection must be more carefully considered.


Read more...

 

Money manager's small cap buys
by Jim Oberweis Jr., editor The Oberweis Report

Small-cap growth stock valuations are cheap, and like most things in life, economies are cyclical, even if this is a long and painful one. For the rare, brave contrarian with a reasonably long time horizon, that spells opportunity.


Read more...


   

Opportunities in homebuilding?
by Bernie Schaeffer, editor Schaeffer's Investment Research

Based on our "expectational analysis" strategy -- which  combines fundamental, sentiment and technical metrics -- I initiated long positions in two homebuilding stocks: Lennar Corporation (LEN) and Toll Brothers (TOL).


Read more...

 

Cliffs Natural: A DRIP favorite
by Vita Nelson, editor MoneyPaper

Our latest featured dividend reinvestment stock is Cliffs Natural Resources (CLF). Founded in 1847, the former Cleveland-Cliffs is the largest producer of iron ore pellets in North America.


Read more...

 

S&P's trio of info tech ETFS
by Dylan Cathers, S&P Capital IQ Equity Analyst, S&P The Outlook

Information technology is one of four sectors that S&P Capital IQ’s Sector Strategy Group currently recommends investors overweight in their portfolios.


Read more...

 

Crescent Point: Bakken bet
by Brian Hicks, editor Wealth Advisory

Master Limited Partnerships (MLPs) are unique investments that combine the tax benefits of a limited partnership (LP) with the liquidity of common stock.


Read more...

 

Natural gas: A bottom?
by Jason Cimpl, editor Daily Profit

Natural gas has collapsed for the past four years and has been on a gradual decline for almost a decade. Prices topped near $16 in 2005 and then declined to $2. So did natural gas just bottom?


Read more...

 

FBR Focus bests 99% of peers
by Walter Frank, editor MoneyLetter

Funds that invest in a relatively few stocks or sectors are less diversified than broadly invested funds and their volatility can be much higher. But the team at FBR Focus (FBRVX) seems to be getting it right.


Read more...

 

Celgene: Catalysts ahead
by John McCamant, editor Medical Technology Stock Letter

Celgene (CELG) recently kicked off the 2012 JP Morgan Healthcare conference by pre-announcing 4Q11 results and providing 2012 guidance.


Read more...

 

Water, water
by Richard Band, editor Profitable Investing

In the current environment, investors should focus any new stock purchases on companies with recession-resistant franchises and generous dividends -- such as water utilities.


Read more...