Posted on November 05
Spain is expected to experience another year of economic contraction in 2010, but that bleak outlook hasn't put a big damper on the country's stocks. MSCI's index of Spanish companies lost less in 2008 than the MSCI index that tracks the European Monetary Union, and so far this year Spain's 33% gain tops the overall euro zone's 20%. By Tara Kalwarski
Related Story: Spain: Seeking New Worlds to Conquer
Video: Investing in Spain
THE HOT AND THE NOT
Financial companies in the MSCI Spain Index are projected to experience weak earnings growth in 2010, while telecom and energy companies are expected to see double-digit increases. (Data: Bloomberg; *Projected; as of Nov. 2)
ENERGY EXPOSURE
Investors can use these two funds to gain exposure to Spanish renewable-energy companies; their top holdings include EDP Renovaveis, Acciona, and Iberdrola Renovables. (Data: Morningstar)
CHARTS BY RAY VELLA/BW
Posted on October 29
With a flood of new issuance and year-to-date gains averaging 50%, there's worry of a bubble in high-yield bonds. Rising prices have sent average junk yields from 15% in February to 9% in October. Investors who still want in should proceed with caution and spread their bets. By Lauren Young, with Tara Kalwarski
Related Story: Are Junk Bonds Too Hot to Handle?
Video: Investing in High-Yield Debt
SLICING UP JUNK
These three mutual funds, which focus on higher-quality junk bonds, have delivered above-average returns over the long run and have low expenses.
HIGH YIELD'S RAPID RISE
After falling off a cliff late last year, high-yield bonds have been climbing back. Their recovery has them outpacing U.S. Treasuries and investment-grade debt.
Posted on October 29
While the balance sheets of big investment banks are returning to profitability, the financial crisis continues to hammer away at regional banks. However, the failure of former rivals has enabled some savvy regional players to expand their businesses, and such banks could continue to see market share gains as the economy improves. Among funds that track regional banks, different investment approaches have resulted in vastly different performance figures. Portfolios that hold larger companies have notched better records year to date. By Tara Kalwarski
Related Story: Mr. Clean Up
THREE WAYS TO GO
RACKING UP RESERVES
These regional banks have increased their number of branches and other retail outlets during the past year, which may give them an advantage as the industry recovers.
Posted on October 22
China's economy is on track to grow 8% in 2009, but technological innovation isn't likely to drive the expansion. The main engines are expected to be infrastructure development and consumer spending. Investors should stick with big global players, many of which are state-run monopolies—and remember that rapid economic growth may not translate into blockbuster stock gains. By Lauren Young
Related Story: The China Hype
Video: Investing in China
CHINA RISING
China's benchmark index is beating the S&P 500-stock index this year.
RED CHIPS
These China-centered funds are run by pros who have delivered stellar long-term performance by focusing on companies that have dominated the country's competitive landscape.
INDUSTRIES ON THE MOVE
Shares of technology and communications companies in the Shanghai Composite haven't been the index's best performers in the past year, but investors can take advantage of pockets of innovation in these two sectors via American depositary receipts (ADRs).
Posted on October 15
The dollar is in its eighth straight month of decline against other major currencies. An easy way to hedge a portfolio against continued and possibly deep losses is to increase your exposure to international companies less affected by a volatile U.S. currency. Since 1970 a global portfolio has outperformed the Standard & Poor's 500-stock index. By Tara Kalwarksi
Related Story: What Happens if the Dollar Crashes
Video: Investing in the Weak Dollar
DIVERSIFYING OVERSEAS
Investing in foreign equities used to be a pricey proposition for retail investors. These mutual funds come highly rated by Morningstar and offer a range of geographic mixes.
*As of Oct. 12; multiyear returns are annualized. Data: Morningstar
A SMALLER U.S. SLICE
Overseas stocks now account for a larger share of the world market, with U.S. equities dropping by almost 10 percentage points over the past five years. Consider changing your international exposure to mimic the global mix.
*As of Oct. 8 in U.S. dollars
