MSN Quotes Cabot Editor on Emerging Markets Stocks
MSN columnist Michael Brush quotes Cabot China & Emerging Markets Report editor Paul Goodwin in his July 22 article, "Emerging markets will lead us back," in which he makes a case for Americans' years-long consumer-spending spree as the catalyst for a global recovery.
Like the Marshall Plan after World War II, the investment in emerging markets will actually help the U.S. bounce back, writes Brush, "perhaps more strongly than most anticipate, as a world of new consumers starts buying our stuff."
According to Brush, "Over the years, U.S. consumers were, in one sense, making a huge investment in the economies of emerging-world countries as we purchased their stuff." Now that investment should pay off as emerging economies truly emerge as economic powerhouses, with some already casting off the global recession and posting strong growth. Brush offers stocks as an example: China's market is up 27%. India's is up 48%."
Brush writes that his theory offers an optimistic view for stock markets. U.S. stocks may rally a lot more, and sooner, than many pundits currently expect, so keeping money on the sidelines may be a mistake, and it probably also makes sense to buy stocks of companies in these regions despite their big rallies. Among emerging markets stocks that may offer opportunities for growth, Brush named three of Paul Goodwin's recommendations in Chinese education:
China Distance Education (DL)
,
ChinaEdu (CEDU)
and
New Oriental Education & Technology Group (EDU)
, and Indian car company
Tata Motors (TTM)
.
Click here to read the entire article: MSN.com/Investing/emerging-markets-will-lead-us-back
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