Investors looking to profit from the changes under way in Japan’s economy should focus on the beneficiaries of Prime Minister Shinzo Abe’s “three arrows” of fiscal stimulus, monetary easing and structural changes to the labor market and economy. Our favorites: real estate, financial stocks and drugstores.
After three years of underperforming, Asia’s emerging markets could surprise to the upside in 2014. Not only have equity markets discounted the structural challenges that these nations face, but also the bar of expectations for regional economic growth and stock markets remain quite low.
Central banks' accommodative monetary policies, coupled with accelerating economic activity in the US and the recovery under way in the eurozone, should benefit emerging markets, especially those that rely heavily on exports to these regions.
Our outlook for global economic expansion bodes well for equity markets, especially those that have lagged over the past 12 months. We prefer emerging markets that have a current account surplus and significant exposure to global trade.
Unlike the infamous Pets.com and other casualties of the tech bust in 2000--outfits that generated more hype than profits--many of today’s Internet companies have developed profitable business models and are here to stay. But this growth story is far from over, especially in China, the world’s quintessential emerging economy.
Investor sentiment toward Europe remains subdued, despite signs of economic improvement and an uptick in insider buying of European equities. Here are our top stock picks to play this underappreciated recovery.
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