I meant to link to this article about emerging markets yesterday but am just getting to it now.
It ran on Bloomberg and is definitely worth reading.
The general tone is that emerging market stocks may be cooling off a little and that a better way to be exposed is with stocks that have big dividend yields and there is a list of some names that fit the bill.
I have been a fan of Chilean banks for this type of holding. The stocks will probably do well more often than not and they pay very large dividends. There are also a couple of telecom stocks from Asia with very large dividends as well.
These types of stocks are not that hard to find and one way or another belongs in a diversified portfolio. The caution I have been sounding over the last few days has been about having too much exposure, not a call to get out.
I'm not sure if my recent swap out of AU into GLD counts as a true reduction in emerging market exposure or not but I think not and since I never had way too much in the EM theme I am not reducing now. BTW if you disagree with me and say selling AU was a reduction in EM, I have no real argument to give you.
Wikinvest Wire
4 comments:
On Bloomberg today, OPEC President Daukoru was quoted as saying oil markets are oversupplied and there is a risk of “dramatic” price declines, and Russian Economy Minister Gref reportedly said that the quality of economic growth is declining and he is “very afraid” there may be a sudden drop in stock prices. I have a hunch they are both correct!
You know Roger, it's pretty hard to argue with a big fat dividend check.
Especially if it comes from a large national or multi-national, even if it seems to tip your portfolio a bit one way or the other - call it a lean towards security and probable long-term growth (even if it's modest growth). So while not knowing these particular stocks, I like your call in general.
Jay Walker
Being in the US, I would like to know where to go to find stocks of Chilean banks.
Max
to Max,
ADR.com
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