April 4th, 2010
Sometimes we act as if we were that horse on the right. We look straight ahead as if we had blinders on. We read the press, watch the news and talk with our friends about how bad the economy is, the likelihood of a double-dip recession, the poor state of the $US, the ballooning Federal deficit and about the impotence of Congress and the Executive in mending the economy. With all this doom and gloom how could stocks go up, why should anyone put their money at risk instead of leaving it in money market accounts?
Nevertheless, while we’ve had a nice chunk of money parked on the sidelines, stock markets around the world have been gaining ground. If you’re leery about the US markets, take a look at how constructive foreign stock markets have been recently. In short, foreign stocks, especially those in emerging markets, have convincingly broken out of a six-month consolidation (leading US markets) and are now forging ahead. Check out these market ETFs (click on image to enlarge):
- South Africa
- South Korea
- Emerging Europe
- Emerging Markets Infrastructure
- Hong Kong
So take off those blinders and pack your bags. It looks like there are some opportunities are overseas.