The US stock market might be in the midst of the longest running bull market in history, but that doesn’t signal good news for new investors. Even if you’ve already got investments, looking to expand your portfolio may be difficult with stocks priced fairly or overvalued.
Enter The Foreign Markets
We have a bit of bias when it comes to our home country’s stock market, but it’s time to look beyond the borders of the US to expand portfolios. Let’s take a look at five emerging markets with high rates of potential.
Of course. China is expected to perform well. How could it not? With one of the largest manufacturing economies on the planet and massive technological changes on the horizon, investors stand to make enormous profits.
Elite tech firms are some of the first stops potential investors should make. Emerging leaders in this market include Alibaba Holdings and Baidu. In fact, KraneShares CSI China internet exchange-traded fund included these two companies and is currently trading at $50 a share.
India’s workforce is healthy, and with such a young workforce, this country is one to watch. In fact, it’s on track to become the youngest country by 2020 and is something of an outlier in the world of aging populations.
This boom translates to a workforce that will remain above a billion, so India’s e-commerce landscape is set to expand from about $30 billion to over $200 billion in the next ten years. With the number of online shoppers only rising in the same timeframe, India’s market future is bright.
This one might be a surprise, but Israel’s stable market is a plus for foreign investors. It consistently outperforms all other markets in the region despite political unrest and conflicts in surrounding areas. Recently, Standard and Poor’s upgraded Israel’s credit outlook to AA-
Society may be in conflict, but geopolitical maneuvering rarely affects corporate profits. Although the Lira may be weak, the fact that foreign investors seem reluctant to head to Turkey could make investing a bargain for more savvy investors.
The price-earnings ratio is very low, and wages are being paid with fewer US dollars. Services, however, continue to run in US currency worldwide, so there’s little overhead interfering with shareholders.
There’s little risk with South Korea. A strong economy and little geopolitical risk have made the price to earnings ratio high, but the extra benefit of political stability makes it a better investment than say Argentina or Pakistan.
Now that the risk of another Korean War is lower thanks to opening talks between the two countries, and stocks are likely to continue rising.
Top performers include Hyundai Motor Company and Samsung Electronics.
It pays to expand beyond the borders of the United States when considering investments. Countries with emerging markets and those who are on the cusp of technological evolutions are some of the best bargains investors can have.
Davenport Laroche is a leading shipping container investment agency based out of Hong Kong.