Investors who think that developed markets can deliver strong returns if China’s economy collapses will be painfully off the mark. Fortunately, we don’t foresee a complete meltdown for China. The world’s quintessential emerging economy also includes pockets of opportunity for investors with a longer time horizon and the stomach for near-term volatility.
Our favorite refiner stands to benefit from the growing glut of crude oil on the Gulf Coast, growing international demand for diesel and superior economics to competitors in Asia and Europe. Equally important, this stock complements the Wealth Builders Portfolio’s existing energy holdings.
Energy-focused master limited partnerships (MLP) have become increasingly popular among investors for their above-average yields, tax advantages and exposure to the US shale oil and gas revolution.
Consensus opinion is bearish on small-capitalization stocks. But investors who resist the group-think will find a fertile hunting ground for some of the best money-making opportunities in today’s market.