Tap into global investing opportunities

Emerging market stocks are now 10% lower than their historical norms.

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From the November 2013 issue of the magazine.

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money_jump_296Since 2003, the MSCI Emerging Markets Index has climbed a whopping 265%. While the U.S. Fed’s quantitative easing program has caused a pullback, Excel Funds portfolio manager Christine Tan points out that emerging market stocks are now 10% lower than their historical norms. This represents a significant buying opportunity. Here are three companies to consider.

Top Pick: TAL Education Group (NYSE: XRS) | 16 P/E

Beijing-based XRS tutors Chinese students in all grades and subjects. With education in high demand across the country, business is growing and has expanded to other cities.

WuXi PharmaTech (NYSE: WX) | 14 P/E

This Shanghai-based R&D company is winning a lot of outsourcing business from big pharma: 66% comes from China, and 34% is in the U.S. It also has a growing drug manufacturing division.

Mobile TeleSystems OJSC (NYSE: MBT) | 10 P/E

Moscow-based MBT is the smallest player in the Russian mobile market, but it’s growing quickly. In 2014, consumers will be able to transfer their numbers to any carrier, an odds-on boon for MBT.

Forward Price-to-Earnings Ratio (P/E) compares a company’s current share price to its expected per-share earnings. (Data listed as of Sept. 27, 2013)

One comment on “Tap into global investing opportunities

  1. I invest in emerging markets, but I do it through fixed income securities with bond mutual funds. The thought of being invested in foreign sector equities really freaks me out. I invest abroad, but I do it conservatively. Some people might say that totally defeats the purpose of foreign investing because the whole point is to take a gamble. I am all for diversification but I just can’t take that much risk.


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