April 4th, 2010

Some Opportunities Overseas

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):

  • Japan
  • South Africa
  • Australia
  • Russia
  • South Korea
  • Emerging Europe
  • Emerging Markets Infrastructure
  • India
  • Malaysia
  • Hong Kong

So take off those blinders and pack your bags. It looks like there are some opportunities are overseas.

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  • Anonymous

    Guru,

    what does your sector allocation % look like now??

    what do you think about uyg, ure, uym,dig?

  • Joe

    My portfolio is currently invested in:

    Financial Svces: 28%
    Energy: 14%
    Healthcare: 13%
    Software: 7%
    Consumer Svces: 7%
    Industrial Mtls: 6%
    Business Svces: 6%
    Telecom: 4%

    Most are in small caps. Most of Financial Svces are in REITs, Asset Mgrs and Insurance.

  • Anonymous

    thx for the reply! pxd,x,pcx,,mtl breakout according to stockconsultant

  • Manoj

    Hi Guru
    Could you list your REIT/Asset Mangers/energy holding.

    I still have HIG/LNC from the charts you shown once. Before that I laso have CNO. What is your opinion on these.
    I am getting the feeling that long run is close to the finish line.
    Thanks
    Manoj

  • Joe

    Manoj, understand my style is to try to find Industry Groups that seem to be working and then assemble my own "ETF" of what I think are the stocks in the group with the lowest risk/highest opportunity (based on chart). I plan to hold these positions until 1) group moves out of favor or 2) market moves into correction.

    The ones you asked about are:

    REIT: PEI, MPG, SUI, CBL, SUNH, SNH, NHI, BXP, HPT, EPR, IYR, BDN, DRE, ACC, EDR

    Asset Mgr/Financial: AB, GHL, PFG, HIG, JNS,

    Energy: APL,ANR, ATPG, HERO, REA, PBT, DVN, CHK, SM, DIG, PETD, HLX, FST, OIL

    Other industry groups I'm in are: health care, tech, restaurants and auto parts.

  • forex-cat

    Your article is always useful.
    Thanks.

  • Anonymous

    MPG in your REIT holdins have 4 B debt…that is dangerous.