In the annual Barron's Roundtable of leading investment pros, Hong Kong-based Marc Faber makes two Asian ETF picks:
Over the next 10-20 years Asian markets, including Japan, could have 25% to possibly 50% of the world market cap, from 14% currently...
[My] recommendation is the Taiwan stock exchange, which you can buy via the iShares MSCI Taiwan Index (ETF: EWT). This index offers a basket of stocks that yield approximately 4%, compared to the Taiwan bond yield of 2%. The Taiwan market hasn't done anything in the last year. Malaysia was down, and I would also buy the EWM -- the iShares MSCI Malaysia Index.
Felix Zulauf: Why didn't Taiwan move last year? Was there a particular problem?
Faber: It's all about momentum. When Japan and Korea and India began to move, a lot of money rushed into those markets.
EWT 1-yr chart:
EWM 1-yr chart:
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