Bangalore: After a rough run of U.S. stocks, investors are turning to other countries for investments. Though U.S. stocks have fully recovered from last summer’s financial trim down, most global investors are attracted more towards emerging markets economies like, China and Brazil. Here are the 7 hot spots of global investing as listed out by Michael Brush of MSN Money -
1. China
Investing in China needs a basic rule of not betting against the Chinese government, as it has the power to get what it wants. “You never want to buck Chinese economic policies,” says Paul Dietrich, Director of Global Research at Washington Wealth Management, as told to MSN Money.
“China wants a strong internal economy, so it doesn’t have to worry about Europe and the U.S.”, adds Dietrich. China is carping up its retreat system to encourage people to save less and spend more. It's lowering its income taxes for people, who earn less, and wages are rising rapidly, may be to boast retail therapy for the masses to cope with slowing export demand.
Dietrich suggests that China’s smartphone provider China Mobile is a good place to invest in. He says, “It’s one of the fastest-growing cell phone companies in the world. It has enormous potential.”
Dietrich also likes CNOOC, which is China's main offshore oil and gas producer. “They are the Exxon of China; Chinese people are just like us. When they buy a new car, they want to go on a road trip,” he says.
He also suggests Chinese Internet search company Baidu, retailer of luxury watches, Hengdeli, Las Vegas Sands, Starbucks, Coach and Apple, as these products are more popular in China.
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