With fears of an impending Japanese sell-off and a China slowdown, as well as ongoing sovereign debt woes in Europe, many fund managers are seeking more safety when investing abroad, says Morningstar's Bridget Hughes.
The GMO chief strategist highlights the factors behind the market's bullish bias, abnormally high corporate earnings, current valuation levels, a slowdown in productivity, and the great paradigm shift in natural resources.
BaoCap's Kevin Carter says there's no imminent landing--hard or soft--in China, and with the country's 35% contribution to global GDP growth, investors should up Chinese exposure in the consumer and tech sectors.
Chinese Internet giant Baidu offers robust growth at an attractive share price for investors who can get comfortable with the regional and business-specific risks, say Morningstar's Matt Coffina and Dan Su.
Vitaliy N. Katsenelson, CFA, is a portfolio manager/director of research at Investment Management Associates in Denver, Colo. He is the author of “Active Value Investing: Making Money in Range-Bound Markets” (Wiley 2007). To receive Vitaliy’s future articles by email send a blank email to ...