Wondering where to invest? Two words: Emerging Markets and U.S. stocks with international exposure.
Emerging markets promise the strongest growth in this era of debt-swamped economies. There will be far better growth outside the U.S. Investors should leverage the faster growing growth spots around the world. I continue to like Brazil, China and Asia. This should include commodities which are an indirect play on infrastructure growth in emerging markets.
Look for equities in emerging markets that have these four things: 1) strong balance sheets; 2) strong global footprint; 3) defensive characteristics; and 4) ability to expand and grow dividends.
Also consider U.S. large cap stocks that have meaningful exposure to the growth characteristics of emerging markets. Some good examples include: Apple (NASDAQ:AAPL), Altria (NYSE:MO), Caterpillar (NYSE:CAT); Joy Global (JOYG) and Marvell Technologies (NASDAQ:MRVL).
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Disclosure: "Long AAPL, JOYG, CAT"