Sunday, October 10, 2010

The Dominant Theme(2)

Thanks for the input: A response to Investor, Steve, mikeQ and Shawn Severin: I believe as investors we must always consider any opportunity – even if seems improbable at the moment, for example my Momentum Tables have consistently been ranking the US Consumer SPDR in the top 5-groups for several months and I have been brushing the signal off as a temporary outlier but, I “forgot” that many components are global players In other words there are millions of consumers in the developing economies who aspire to live like North Americans!

Steve’s aging baby boomers – Pharma, Health care, Funeral Services theme could work in the older mature economies but probably not a global play. mikeQ’s energy and transportation theme could have legs. The emerging market (i.e. Brazil, China, South Korea, Malaysia, Thailand, Singapore, Indonesia, etc.) growth as a dominant long term investment theme has great appeal. If so we need to seek out the lower risk beneficiaries – one of which could be a 2nd tech boom or a trade beneficiary such as Japan, coal, lumber or cheeseburgers,

I think we should examine the emerging market ETFs that may be of interest are: THD, IDX, ECH, EWS, EWY, EWM, etc. with China, Brazil and India are experiencing rapid GDP growth. Shawn Severin observes the south-Asian economies that the above ETFs represent are growing even faster. These ETFs have rocketed off of the 09 bottom and are posting new 52-week highs. There is lots of work here so let us spend the next few weeks building a theme(s) and making some money.

1 comment:

Anonymous said...

thanks, this is good observation,as I would like to expand my Cdn allocation , to reduce the $ value of an individual stock, such as BBD.B or STN.
If I alter the total to , say, 20% foreign then the Cdn. stock will be reduced in $ value. This avoids a "disaster" risk to one stock.