Two Overseas Stock Markets With More Growth And Value Than The U.S.

Contrary to popular opinion, not all stock markets are alike. Different regions and country stock markets often move to the beat of their own drummer based on all sorts of factors, from economic growth to political events and perceptions of risk. It pays overtime to take a global perspective.

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One easy strategy to capture global opportunities is through a country ETF rotation portfolio. Almost every major and emerging market country you can think of has an exchange-traded fund (ETF). Here are just a few.

How to Invest in the World

New Zealand (ENZL)  

Switzerland (EWL

Italy (EWI

United Kingdom (EWU

Philippines (EPHE)

Turkey (TUR)

Brazil (EWZ)

India (INDA

Argentina (ARGT)

China (FXI)

Why would some of these markets be doing better than China? It’s simple: they are competitors to China.  

Because of higher costs in China, production is going to other markets in the region. Trade and investment within Southeast Asian countries are also rapidly increasing. During the last decade, foreign direct investment between these countries has more than tripled. I could go on with other examples, but you get the point. The country’s markets and, in turn, the stocks you invest in makes a tremendous difference in performance.

Two Overseas Stock Markets with Value and Momentum

I have learned over time that the best strategy for picking countries to invest in is to look at the extremes of value and momentum.

On the momentum side, I would look at Taiwan (EWT), a market that is up 17% in 2021 and up 69% in the last year. At 20% of assets, this ETF’s largest holding is Taiwan Semiconductor (TSM), which is the dominant producer of high-performance microchips in the world. With a global semiconductor shortage making headlines, this stock should outperform. Many of the Taiwan ETF’s other holdings are in high tech and finance.

On the value side, despite all the corruption and political meddling in the Russian economy, its stock market, and the Russia ETF (RSX), is dirt cheap. Second, Russia, as a Pacific Rim nation, is stepping up its trade and investment outreach to countries such as China, South Korea, and Japan. In fact, over the past five years, Russia’s bilateral trade with Japan has already doubled and trade with South Korea has tripled. These trends will accelerate as the Pacific century unfolds.

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Disclaimer: All the information in this article - is published in good faith and for general information purpose only. Hashtag Investing does not make any warranties about the completeness, ...

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