If you want to increase your future returns while reducing your risk, you should add some emerging-market stocks to your portfolio. It may surprise you that adding riskier, emerging-market assets to a portfolio will reduce overall risk, but it shouldn’t. These markets do not move in lockstep with the U.S. market, which hit a series of all-time highs in the fourth quarter of 2013.
For any careful investor it’s important to understand not just the current trend but rather where we’re headed. As such, keep an eye toward the future for the growth leaders of tomorrow. Since 2007, emerging markets have been outspending American consumers. Take a look at the charts here to see how the international growth/redistribution of current consumption trends will change the landscape of international business.
- Emerging Markets: Overseas Bonds Produce Fat Yields
Posted on June 28, 2012 by Chris Hunter
Let me warn you up front: You probably won’t like today’s recommendation. It has nothing to do with the stock market. Today, I am going to recommend that you dip your toe into a different market—and buy bonds. I bet not one in 100 readers of this magazine gives the bond market as much attention as he gives to the stock market. And it’s fashionable these days to talk about all bonds as “bad” investments.
Dividends “pay you” to own a stock…they can give you a regular income and they can help you pick proﬁtable, mature companies that generate lots of cash. My favorite way to “get paid” dividends is in the Brazilian power-generating sector.
As you know, the last six months haven’t been stellar for the emerging markets. But what you’ve got to understand is that you can’t base your investing decisions on what’s happened in the past. Because the markets don’t care about the past. They care about what will happen in the future.
- How You Can Profit from China’s Democratic Revolution
Posted on June 27, 2011 by Chris Hunter
I’ll be blunt. I have no time for Communists. Theoretically, Communism is just plain dumb. But on a practical level, it’s even worse.
- Where Most of Your Future Portfolio Gains Will Come From
Posted on June 15, 2011 by Chris Hunter
The trend is up. This may sound odd. After all, a lot of investors are pretty gloomy these days. In America, house prices continue to head south… about 1 in 10 people remain unemployed… and Washington is in disarray over what to do about its spiraling debt problem.
Earlier this week, I talked about the most important big trend in the world: the growing pressure on our finite natural resources as populations and wealth grow in the emerging economies. Today, I want to tell about how to play this trend.
- How to Avoid the Stupidest Financial Mistake of 2011
Posted on May 11, 2011 by Chris Hunter
I’ve been beating the drum on commodities lately. My message: The recent plunge in prices would be short lived. The long-term trend for higher prices remains intact.
- The Next Commodities Bubble is Coming…Sooner Than You Think
Posted on May 9, 2011 by Keith Fitz-Gerald
To hear the mainstream media tell it, the commodities bubble has burst. Don’t you believe it. Commodities prices will be back. In fact, 12 months to 24 months from now, gold, silver and other commodities will be trading at higher prices than they were just a few weeks ago – when they were trading at record levels.
- Critical Update on What to Do With Your Commodities Investments
Posted on May 6, 2011 by Chris Hunter
There are three main routes into overseas markets. 1) You can invest in overseas stocks (or in domestic stocks that make a large portion of their profits from high-growth overseas markets).
- Why Successful Investing All Comes Down to “Integrity”
Posted on May 5, 2011 by Martin Hutchinson
Successful overseas investing all comes down to the “integrity” of each country’s business system. You can get a good idea of this by looking at the Transparency International Corruption Perceptions Index, which is published every year.
- What the End of the “Age of America” Means for You
Posted on April 27, 2011 by Chris Hunter
It’s official: The end of the “Age of America” will happen in 2016. That’s when, according the latest forecasts from the IMF, China’s economy will surpass America’s.
- S&P Downgrade of U.S. Debt Could Have Dire Consequences
Posted on April 26, 2011 by Martin Hutchinson
The U.S. debt crisis became even more urgent when Standard & Poor’s finally downgraded its outlook for U.S. debt. Of the 17 countries that S&P has rated AAA, the U.S. is the only sovereign that carries a negative outlook.
- Now Is Still a Great Time to Buy “Anti Dollar” Currencies
Posted on April 18, 2011 by Chris Hunter
What’s happening in Europe should be a wake-up call for America. Over the weekend, Finnish voters gave a big boost to its euro-skeptic True Finns party. The party says Finland should stop funding Europe’s “squanderers” – Ireland, Portugal and Greece.
Staring at a chalkboard behind the reception desk at my hotel in Campo Grande last night, my Brazilian friend Renato Roscoe let out an audible “tssst. The board showed Brazil’s currency, the real, at R$1.58 versus the dollar. “It’s hard to keep track these days,” said Renato. “The real keeps getting stronger against the dollar. This is crazy.”
Most investors operate on some variation of the “set it and forget it strategy.” And that’s why – more often than not – they’re surprised by the terrible things that happen to their money when the stock market stumbles.