Recent Dow Jones gains have made investors a lot of money, but a large bearish correction seems to be lurking somewhere amongst the midst of largely overvalued large caps stocks and severely broken energy funds.
I think now is the perfect time to look elsewhere for your 10% annual return. Stop salivating over Google stock for three seconds and take a look at what�s going on overseas. I�ll give you a hint; it starts with G-R-O, and ends with W-T-H. Growth. Massive Growth.
China and India are my favorite international growth plays because their economies benefit from large numbers of citizens and strive on global expansion.
Take China for example. The recent $19 billion ICBC initial public offering reveals that future growth prospects for China are expected to be huge. China has tons of cash and billions of residents who have achieved more than 10% GDP over the past year. GDP growth will fluctuate from year to year, but nonetheless 10% growth is a great starting point for the new bank IPOs. China�s banks will continue to improve their lending strategies over time as this giant nation becomes more familiar with how the American loan system operates. Too many Chinese banks sponsor lousy businesses at the moment, but this will definitely improve in the near future.
Two Chinese stocks I like are China Mobile (CHL) and China Medical Technologies (CMED). These two stocks are directly correlated to any growth China will experience. India has a similar profile to that of China. A massive growing population compounded with robust GDP growth will certainly pay off for investors in the long run. India�s firms also benefit from some of the cheapest variable and fixed production costs in the world. Many big American Players have outsourced businesses and built factories on India�s soil in order to benefit from the economies of scale.
I like Tata Motors (TTM), India�s largest automobile maker, as a long term growth play on the Bombay stocks. Yesterday Tata reported a 31% rise in profit as their sales growth continued to offset higher raw materials cost. Tata is experiencing strong growth in Africa as well and is steadily becoming a titan in the African automotive industry. India and Africa together is a large enough footprint to provide TTM with steady sales growth and net profit. Best of all, Tata is still a relatively mid-sized company with a market cap of $6 billion. They have a lot of growth ahead.
Heck, China and India are going to grow anyways, so why not invest in Asia and grow wealthy too.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.