You're watching...
ING Investment Management U.S. Chief Market Strategist Doug Cote on the emerging markets that should be on investors’ radar.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
All of that much more here's the question though -- China is too unpredictable for you right now.
Where can you go for yield where can you invest -- plump up your portfolio.
So for awhile now a lot of experts have been advocating investing in emerging markets because they're little God's -- better -- we did some digging for you into the best.
And worst global market performers after this past year and found that your standard.
If there is a standard emerging country that's -- disappointing over the past your Brazil for example which was so red hot lots of high hopes at the Olympics coming in World Cup etc.
Scott a laggard performer followed by -- -- And Russia that China was also in the red with the Shanghai composite down 4% in the last year.
But our next guest says you know what it's -- you can't get away from the main stream emerging markets and look instead.
To less -- of locations more fertile ground that -- delivered tremendous performance.
Doug contain -- ING US investment management chief market strategist joins -- now.
The -- over in Hartford Connecticut the Fox Business exclusive Doug did you when you say -- It's actually not necessarily meaning to -- in a way but also different nations before we get to what you like right now tell me why you don't like.
The old standard.
US event.
-- Well because broad global diversification as what you're really looking for and what what it means is.
Don't look at normal places for growth look far and wide and that's how you make money.
We are truly moving because of global trade into a broad global economy and that -- it turn.
Is we came up with its Peru Indonesia Vietnam Oman and Turkey.
Those places are enormous opportunities.
And that's what he's -- -- -- -- investors to do is look far and wide for opportunity -- -- you're looking for.
So that -- is perfect and start with that one what is it about Peru that you like so much right now.
Us economic growth it's trade it's in between not by China and Brazil so is going to get a lot of the infrastructure play you're seeing all all the US corporations by the way are taken opportunities to get in Peru for natural resource.
Let me just say -- -- -- conduct we're showing the iShares all -- cap index ET you very close to its 52 week caught by the way of about 48 so you're looking at that one that looks extremely -- comfortable so does.
Indonesia you've got also and iShares Indonesia play that we wanted to put up here.
And that one is also closed with 52 week high.
Well.
Indonesian particular date they -- one of the few countries that actually got upgraded by the credit rating services.
They have tremendous natural resources they have copper they have oil -- And they are leveraging that.
To grow their economy and their 250.
Million people and that's not commonly understood how big they are.
And there at the sweet spot Asia got going forward not just China is you look in and and Bob Vietnam that as well.
That's going to be -- prosperity is a hot spot.
And it's not Vietnam that particular lower labor cost is actually replacing China for a some manufacturing plants.
I I've heard that for actually a couple of years and it's really playing out with the market sectors are ATF for Vietnam to show you was well on that one just a little bit more distance between that the 52 week high but -- -- Then continue through you know you look at this opportunity to be in a lot of frontier markets.
I love -- ETFs because it gives people a chance to play a lot of them as you say for example PM and okay.
The annual highs eleven here for this one of -- what's in here that that is an opportunity lots of different countries is an African nations as well.
Yeah.
Thank god.
What investors need to think about is some time.
Times adding more -- to your portfolio increases diversification actually lowers risk of the overall portfolio.
And I think that's what's been missing.
And and looking yet the overall portfolio -- -- you know.
The five year high it really depressed -- we are a long way from that but I guess that is the time.
Where you wanna get it you do -- want to buy high you wanna buy low and that of course the old -- well I've which brings me to Turkey.
TII -- Turkey index which is the the opportunity there that we wanted to push up on the on the screen -- And there's a lot of fun a lot of political mayhem going on in that region does that -- you would all.
Live.
Look at economic growth and for the past two years.
They had back to back 89%.
Growth.
That's bigger than China that's bigger than most countries is.
Five times what we're getting.
So you wanna go where the growth is markets don't -- level the implied growth and and -- is a great example in great part of the world.
If you have to be stuck with the US what sectors do you like your -- I -- I like I like mid and small caps made many small caps or this sweet spot of the equity market.
And they have -- the the bigger a large cap cousins and again by accepting a little more volatility.
You actually get paid enormously.
Over time the spread between mart -- million small large cap.
Has been.
Almost -- double over ten years.
Doug it's nice to see you thank you very much -- cut NA ING US investment management chief market strategist we'll see you next time it will put the event.
By the way the pivot nations that he really likes on our FaceBook page FaceBook dot com slash -- Clinton's -- that capture the closing bell ring.
