What the Pros Say: Where to Buy Overseas
With US economic growth in question and the Dow, Nasdaq and S&P 500 suffering from a serious case of volatility, investors are looking overseas for opportunities in the hope of escaping the worst of the credit crunch. Here's where experts from across the world think they buying opportunities are:
Look East for Growth
"China still has a great balance sheet, still has reasonably good growth ahead of it," Khiem Do, head of Asian multi-asset at Baring Asset Management told CNBC, adding that Hong Hong's Hang Seng Index is still a "fabulous long-term growth story, which is valuable to investors." Khiem Do is also bullish on Korea and Thailand.
Star Buys in Latin America
Investors looking to Latin America for investment opportunities should focus on large-cap stocks because "once these markets rebound, that's where investors are going to go back to first," Will Landers, fund manager from BlackRock, told CNBC. Landers likes commodity stocks such as Petrobras and the domestic Brazilian banks.
Buy Russia if Oil Stays Near $100
Russia has substantial currency reserves and has benefited from its oil reserves, Christian Goldsmith, international investment specialist at Fortis Investments, told CNBC. Despite the concerns over geopolitical risks in the region, Goldsmith points out that if oil remains at or above $100 a barrel, Russia can benefit more.
Hot on Aussie Dollar
The Australian dollar could rally to $0.80 to $0.81 in the near term, Benjamin Pedley, MD & investment strategist at LGT Investment Management told CNBC. Pedley recommends buying short-dated, Australian dollar-denominated bonds issued by the top banks in Australia.
Cramer: Stay Away from BRIC
The defensive food and soft good companies seem to be working internationally, but the BRIC plays definitely are not, says stock guru Jim Cramer. He’s not recommending any commodity-related stock.