Diversifying away from the US stock market
Ronnie Moas, Founder at standpointresearch.com
Friday, March 10, 2017
There are more than 200 mid-cap and large-cap International stocks (ADRs) trading actively on the NASDAQ and the NYSE. With the S&P-500 trading at an all-time high, it makes sense to look at some of those names. I currently have 75 open recommendations. 50 are US-based -- while 25 are spread out across 13 countries: Brazil, Canada, South Korea, China, Taiwan, United Kingdom, Thailand, Vietnam, Russia, India, Colombia, Israel & Singapore. All 25 names trade on the NYSE or NASDAQ and most are quite liquid. The Dow Jones doubled from 10,000 to 20,000 in the last 17 years. We will probably see 30,000 by 2025 and 40,000 by 2035. That being said, the market is over-valued today; we have not had a recession in eight years; and the market is due for a correction (and we could see 17,500 before we see 22,500). I recommend hedging the long side of your portfolio with SH shares. The SH is an inverse ETF that does the opposite of what the S&P-500 does. If you buy $100,000 worth of SH, and the S&P-500 drops by 10%, you will make $10,000 on that position (and vice versa). You can also reduce your exposure to the US by going into International names trading at a discount to what US names are trading at. I have a 30-page report on Thailand and Vietnam going out next week -- available and complimentary to members of this group. I celebrated my 50th birthday (last month) with a 23-day (full circle) trip around the world with stops in Los Angeles, Hawaii, Thailand, Vietnam, Cambodia (Angkor Wat Temple), Egypt and Italy (Milan). The trip generated two investment ideas, Thailand & Vietnam, which I highlight in my new report.