10 Emerging Market Stocks For 2011
Emerging markets should continue strength in 2011, as the global economy continues to take shape and recovery.
2011 will most likely see opportunities abound, as sovereign debt issues continue to weigh on the global economy. Every time we hear about a sovereign debt default, the stock market gets spooked and we get a 2-5% correction.
These sell offs have proved to be wonderful buying opportunities, as the “buy the dip” mentality has been working for almost two years now.
2011 should continue to see the same themes that we’ve seen work the previous couple of years, with commodities, industrials, and select sectors of technology leading the way. The past couple of weeks we’ve also begun to see a rotation into financials, and this sector may provide some strength in 2011 as well.
Names to consider in the commodity sector are the Brazilian oil major Petrobras (NYSE: PBR), Vale (NYSE: VALE), the Brazilian mining giant. Brazil should continue to grow strongly for at least the next 5 years, as the build out of infrastructure takes place for the 2014 World Cup and 2016 Olympics. Another commodity name to consider is Chinalco (NYSE: ACH), the Chinese aluminum company. The company has started to diversify away from just aluminum, and get into the lucrative iron ore business with a joint venture with Rio Tinto (NYSE: RIO).
Industrials like CNH Global (NYSE: CNH) should continue to do well, as countries need heavy equipment to build their cities and states, and CNH will be a prime beneficiary of this. Caterpillar (NYSE: CAT) and Deere & Co. (NYSE: DE) will gather the most project work among the three, but CNH will still see more than its fair share of work.
Intellectual property semiconductors have been hot this year, as the consumer looks to be back with a vengeance buying anything and everything they can in electronics. NXP Semiconductor (NASDAQ: NXPI) and CEVA (NASDAQ: CEVA) are two foreign-based semiconductor stocks that will benefit from trends in near field communications, and tablet growth, respectively.
Foreign banks like Banco Bradesco S.A. (NYSE: BBD) and Banco Santander (Brasil) S.A. (NYSE: BSBR) will see strong deposit growth, as Brazil’s middle class continues to strengthen, and more people in the country have bank accounts.
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