Wall Street Daily | Jan 02, 2013 10:05AM ET
Please allow me to interrupt the non-stop coverage of the Fiscal Cliff to provide an important reminder.
It’s not all about us!
A whole world of investments exists out there.
Instead of being paralyzed by the historical impasse in Washington D.C. -- and the accompanying U.S. stock market volatility -- we should be on the lookout for investment opportunities abroad.
Believe it or not, they do exist. And to prove it, today I’m serving one up on a silver platter.
So let’s get to it, before it’s too late.
Re-Emerging Emerging Markets
While U.S. stocks understandably suffer from the uncertainty surrounding the Fiscal Cliff, emerging markets stocks are in full-on rally mode.
Consider: Since October, the S&P 500 Index is down 2.9%. Yet the MSCI Emerging Markets Index (EWY ) our best option. The ETF provides exposure to 105 actively traded South Korean stocks. And at a reasonable price, too. The ETF charges an expense ratio of just 0.59%.
Granted, investing in so many stocks at one time can mute the upside potential. But it also limits the downside risk, which is never a bad thing.
Bottom line: Consider ringing in the New Year with an investment in South Korean stocks. They’re in an uptrend, cheap and still relatively unnoticed by the average investor. In other words, the stage is set for a classic contrarian rally as 2013 unfolds. Don’t miss out!
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