The 5 Best Stocks to Buy for Big Emerging Markets Profits
Emerging markets are volatile, but they also look ready to explode in a way that will make America s bull look like a kitten
Jan 30, 2017, 1:59 pm EDT | By Charles Sizemore. Principal of Sizemore Capital
After years of underperformance, stocks in emerging markets might finally be set to beat the pants off the S P 500. though it s certainly been a long road to get here.
The iShares MSCI Emerging Markets ETF (NYSEARCA: EEM ) is still down by about a third from its pre-2008 highs. The credit and real estate crisis in America followed by a European sovereign debt crisis and a global commodities and energy bust all conspired to take the wind out of the sails of emerging markets stocks.
Yet over the past year, EEM is up about 25% and this may be just the beginning.
When emerging markets stocks start a bull run, you had better watch out. EEM was up by more than 150% between late 2008 and mid-2011. And from 2003 to the onset of the crisis in 2008, EEM was up by a factor of five.
Today, we re going to take a look at five emerging-market stocks to buy that should do extremely well in a good bull market. You probably shouldn t bet the farm on any of these because, as I explained, with emerging markets you pretty well live by the sword or die by the sword. While emerging markets can make you wealthy in a bull market, they can ruin you in a good bear.
But a small, speculative bet in these best emerging markets stocks could still pay off in spades.