Warwick ventures urged their investment team to watch out for overseas stock market powerhouses in the upcoming fiscal year. While U.S. gross domestic product (GDP) is expected to fall in 2009, the World Bank forecasts that China will grow by an astonishing 7.2%. Looking out to 2010 -- when only the most optimistic U.S. forecasters predict noteworthy domestic growth -- China is slated to grow another 7.7%.
Not only is this good news for China, but it's also good news for Brazil. Jeffrey Samuelson reported that China "recently overtook the United States as Brazil's biggest export market," citing The Economist. So as China sees rising demand for its goods, Brazil will see rising demand for the commodities it lays claim to.
Senior Analysts at Warwick explained that there were two major ways to cash in on this trend. The first involves buying a mutual fund or an exchange-traded fund that holds a diverse basket of foreign stocks, such as the iShares MSCI Emerging Markets Index ETF (NYSE: EEM). This holds more than 320 stocks. Another move would be to carefully pick the best foreign stocks, researched by analysts who have met with the executives, checked the financials, and have their own money behind the picks.
