I've just returned from the World Money Show, where some 10,000+ investors gathered to learn about global investing. I had a chance to meet with many of the advisors who were featured at the show, and now I am highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.
"In the commodities bull market that has shaken the foundations of Wall Street over the past year, Australia has been in the center of the action," says Jon Markman, editor of Strategic Investing.
"Although its reputation among the public primarily rests on its sunny beaches, broad smiles, and big beers, the interior of the country has turned out to be one big gold mine. Or iron ore mine. Or coal mine. Or uranium mine. Or ... well, you get the picture. Australia is a floating rock for the ages.
"This kind of wealth generation has a lot of consequences in the economy, not the least of which is ignition of the entrepreneurial spirit. Employees and vendors get rich, and decide to go out and start or expand new businesses of their own.
"And that has certainly happened in Australia, as small-business borrowing is soaring in the country. According to Bloomberg News, bank lending is rising at its fastest pace in 16 years. Capacity at Australian factories reached a record low in the fourth quarter of last year, spurring these new investments.
"Banks are always a big beneficiary of increased business, as they make a lot of money on lending so long as their own borrowing costs stay relatively benign. We actually have two names in the Australian banking sector that I hold on my elite Core Select portfolio list.
"Both stocks are financial services companies based in Australia and New Zealand: National Australia Bank (NYSE:NAB) and New Zealand Banking Group (NYSE:ANZ). The region has done exceptionally well due to the strength of the materials-based economies there, and their focus on supplying the booming industries of India and China.
"To be on my Core Select list, a stock must have risen in 9 out of the past 10 years. And both of these stocks have a perfect 10-year record. Indeed, a stock such as ANZ is the unmistakable picture of a core select list stock; it has averaged a 20% annual gain over the past decade with minimal volatility.
"Overall, both banks are among the top lenders to the exporters of the region and have exercised exceptional cost and risk control. Both have done great for more than a decade due to the region's fundamental outperformance. And both stocks are currently rated as buys."
Steven Halpern's TheStockAdvisors.com provides a free, daily overview of the latest stock ideas from the nation's leading financial newsletters.
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