Look Overseas for Cheap Stocks
If you're not investing internationally, you're missing half the opportunity.
Sarah Ketterer, an investor who often ventures where others fear to tread, co-manages Causeway International Value, a mutual fund based in California.
Why invest overseas these days?
About half of the world’s publicly traded companies are based outside the U.S. So the opportunities to find bargain-priced stocks expand by 100% when you invest globally. Investors have been right to invest in stocks that pay dividends, and in health care and consumer-oriented stocks, but they could overstay their welcome. We think that people can make money in cheaper segments of the market, including economically sensitive stocks such as energy and industrials.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Where are you investing now?
We’re finding good value in the oil-and-gas, engineering and construction industries. We would have an all-energy portfolio if we could, but clients depend on us for diversification. We aren’t keen to invest directly in the economies of developed Europe. Rather, we focus on stocks trading at cheap prices with global earnings. Total (symbol TOT), an oil-and-gas company, is based in France. But its fortunes depend on energy prices and the success of exploration efforts in Africa and the Middle East. We also like Siemens (SI), a German conglomerate.
Should investors be nervous about China?
Growth is slowing, but China is still growing at a faster rate than the developed world. The Chinese government has the wherewithal to stimulate the economy, but it is shifting its focus to consumer spending instead of infrastructure. During that transition, investors may want to stay away, or be cautious.
What about emerging markets?
We trimmed our holdings in emerging markets in 2012. But with prices so low, we’re thinking about building up our exposure again. We like Turkey, Poland, India, Thailand—and South Korea has gone on sale completely. We see fewer opportunities in Brazil and China.
The Japanese stock market has had a torrid run this year. Is it hard to find good buys?
Most of what we own in Japan has not participated in the big run-up. Take, for example, JGC (JGCCY), a fantastically well-managed company that builds energy-related facilities. This is the sort of stock that hasn’t yet fully participated in the global bull market and is well positioned for the next wave of buying.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Nellie joined Kiplinger in August 2011 after a seven-year stint in Hong Kong. There, she worked for the Wall Street Journal Asia, where as lifestyle editor, she launched and edited Scene Asia, an online guide to food, wine, entertainment and the arts in Asia. Prior to that, she was an editor at Weekend Journal, the Friday lifestyle section of the Wall Street Journal Asia. Kiplinger isn't Nellie's first foray into personal finance: She has also worked at SmartMoney (rising from fact-checker to senior writer), and she was a senior editor at Money.
-
Top New Year’s Travel Destinations: Glamorous Cities & Peaceful Retreats
Ring in the New Year your way — explore vibrant celebrations or find your peaceful retreat.
By Karon Warren Published
-
Jim Carrey Ran Out of Money in Retirement. Will You?
Cash-strapped retirees are returning to the workforce. How to prevent becoming one of them.
By Donna Fuscaldo Published
-
Best Banks for High-Net-Worth Clients 2024
wealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
By Lisa Gerstner Last updated
-
Stock Market Holidays in 2024 and 2025: NYSE, NASDAQ and Wall Street Holidays
Markets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2024 and 2025.
By Kyle Woodley Last updated
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?
Markets When does the market open? While the stock market does have regular hours, trading doesn't necessarily stop when the major exchanges close.
By Michael DeSenne Last updated
-
Bogleheads Stay the Course
Bears and market volatility don’t scare these die-hard Vanguard investors.
By Kim Clark Published
-
The Current I-Bond Rate Until May Is Mildly Attractive. Here's Why.
Investing for Income The current I-bond rate is active until November 2024 and presents an attractive value, if not as attractive as in the recent past.
By David Muhlbaum Last updated
-
What Are I-Bonds? Inflation Made Them Popular. What Now?
savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. So how do they work?
By Lisa Gerstner Last updated
-
This New Sustainable ETF’s Pitch? Give Back Profits.
investing Newday’s ETF partners with UNICEF and other groups.
By Ellen Kennedy Published
-
As the Market Falls, New Retirees Need a Plan
retirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
By David Rodeck Published