The "Shape" Of Things To Come
Wall Street strategists and economists are trying to grapple with the direction of the U.S. recovery. AND whatever direction it takes…there’s a growing consensus that the market is bound to stay in a trading range.
For investors, sideways means little to no gains. So how should you position your portfolio? Experts say consider outside the United States and look at the emerging markets.
Standard & Poor’s Alec Young told Maria on the Closing Bellthat Brazil, Russia, India and China hold the key to returns. Young said "exports in Brazil only amount to 14% of the country’s GDP." With that, Young says Brazil can weather any global recession.
In the Far East, Joseph Gunnar’s Clark Yingst likes the China trade. Yingst told Maria that China’s fiscal stimulus spending has fueled a surge in stocks. AND no doubt, it has. The $590 billion stimulus pledge in November has sent the Shanghai Composite up more than 60% this year.
Will the BRICs be strong building blocks for your portfolio? You decide. But remember, diversification is the key to any successful investment.
The economic recovery will take what shape - Cast your vote.
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