Where To Invest, Part 1

Where To Invest, Part 1

over 4 years ago2 mins

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The biggest US stocks have taken a hit in recent days, coinciding with news that those same S&P 500firms are expected to report a 4% decline in profit last quarter compared to a year before... 😵

So what's an investor to do?

Finimize Pack readers will know that the best investment strategy during a market downturn is usually to stick to your guns. Any blips should eventually be corrected – and “dollar-cost averaging” means you’re able to invest more for the same money.

For those looking to tweak their portfolios, however, Bloomberg – which regularly taps professional investment managers for tips – has assembled a few ideas that may make sense in the current economic environment.

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BlackRock flags China’s solid investment potential, despite recent volatility there (political and otherwise). At an average of 8.5x earnings, Chinese companies appear relatively cheap. Their increasing reliance on domestic demand, rather than overseas trade, also means such stocks could help diversify an investor’s portfolio.

Average Joe investors can buy Chinese stocks through a single exchange-traded fund like the Xtrackers Harvest CSI 300 China A-Shares ETF. Still, with those shares at one point down 30% last year, other ways to invest in China are available in Finimize’s, er, Investing In China Pack… 😉

Anything else?

Recent central bank moves should make financial life easier for emerging markets. And another such economy that’s recommended as an investment (despite slowing growth) is India.

Investment bank William Blair sees recent tax cuts and ongoing social development supporting Indian stocks, which it believes could deliver an annual 10% return in the next few years. The iShares MSCI India ETFis one way to invest in such companies – or you could check out Finimize’s Investing In India Pack for more options 🇮🇳

Some investors, however, like to hunker down and avoid stocks altogether when recession bells are ringing. If you’re the cautious type, tune in again later this week, when we’ll talk through a couple more trepidatious tips…

Be sure to tiptoe back on Friday
Be sure to tiptoe back on Friday
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Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

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