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How to Find Value Investments Offshore
As the bull market in stocks ages, US investors are rolling over their investments from a focus on growth to a focus on value. They are also looking offshore for foreign investment opportunities. Some choose to combine the two approaches, but how do you find value investments offshore? CNBC reports that Morgan Stanley is looking offshore for value and where to put your money for the next year and they specifically suggest Brazil, Thailand, Indonesia, India, Peru, and Poland.
Underpinning the bank’s preference for stocks in emerging markets is an expected stabilization in growth in those economies in 2019, while expansion in the U.S. is expected to slow.
The projected turnaround for emerging markets is one reason why the investment bank prefers stocks in those economies over that of the U.S. next year. Morgan Stanley said it upgraded emerging market stocks from “underweight” to “overweight” for 2019, while U.S. equities were downgraded to “underweight.”
So, if you too think that the US bull market has largely run its course and that the emerging market bear market has likewise stopped going down, why aren’t you investing offshore?
How to Find Value Investments Offshore: American Depositary Receipts
Unless you have specific knowledge and experience in foreign markets and with foreign investments, you may not know where to start. And, for that matter, you may not have the time to evaluate specific investments in specific countries. You can follow the advice of folks like Morgan Stanley, but what stocks to you look for in Brazil, Thailand, Indonesia, India, Peru, and Poland?
Once you have decided that a certain country is socially, politically, and economically stable, how do you pick stocks or other investments? One useful approach is to look at American Depositary Receipts or ADRs from any of these nations. Investopedia defines ADR.