Global growth trades will prove to be the winners in this last phase of the bull market. But success with them will require accuracy and agility. Outperformance will favor strong stock pickers, as investment correlations that favored passive investment strategies break down while the bull market nears its end. Emerging markets should continue to outperform for the rest of the year.
Investors tend to be underweight Asia, including China. This major telecom is one way to better balance while buying into a company that has the current business and resources to grow as next-generation data networks are deployed.
On a price to book metric, the energy sector trades at a 50 percent discount to its 20-year average. That makes it the cheapest sector in the emerging markets universe. Our favorite company fits well with our Asia-focused investment thesis and current geopolitical trends.
Investment correlations that favored passive investment strategies are likely to break down while the bull market nears its end, favoring strong pickers. Look to emerging markets for some of the best opportunities.
China is the stock market investors love to hate. The conversations are always about what could go wrong and rarely what could, or will, go right. And yet China’s equities have outperformed emerging markets during the past one-, three- and five-year periods. For the past year, we’ve made the case that cyclicals and growth names should be the focus when investing in China.
For some time, mining companies thought diversifying their portfolios was the best way to improve cash flow stability and protect themselves from natural resources cycles and increased volatility. That hasn’t worked, at least not as expected.
Few things can be as damaging to an investment as a cut dividend. In this article, taken from a regular feature in Conrad's Utility Investor, Roger reviews four stocks he considers to be at risk of a dividend cut.
China is the stock market investors love to hate. The conversations are always about what could go wrong in China and rarely about what will go right. And yet Chinese equities outperformed other emerging markets during the past one-, three- and five-year periods.
Overseas investors must pay attention to the way proposed US trade policies will affect emerging markets. And within the ones best protected, Indian small caps are our favorite, especially as domestic reform turbulence subsides.
DISCLAIMER: Capitalist Times, LLC is a publisher of financial news and opinions and NOT a securities broker/dealer or an investment advisor. You are responsible for your own investment decisions. All information contained in our newsletters or on our website(s) should be independently verified with the companies mentioned, and readers should always conduct their own research and due diligence and consider obtaining professional advice before making any investment decision. As a condition to accessing Capitalist Times materials and websites, you agree to our Terms and Conditions of Use, available here including without limitation all disclaimers of warranties and limitations on liability contained therein. Owners, employees and writers may hold positions in the securities that are discussed in our newsletters or on our website.