"On the one hand, it would take a spate of unexpectedly bad news to take global stock markets much farther down from their current levels. On the other, the markets are so technically oversold that they are due for at least a moderate bounce.

"In particular, I like Israel. First, before the onset of the global recession, Israel's GDP has been growing solidly around 5% for the past few years.

"Barclays Capital sees Israel's economy rebounding in 2010 to grow 2.9%, following a drop of only 1.8% in 2009. The Israeli shekel also has been one of the strongest currencies in the world over recent years.

"That means U.S. investors in Israeli assets benefit greatly from Israeli currency exposure in a strengthening shekel environment.

"Second, Israel has just graduated from 'emerging market' to 'developed market,' according to Morgan Stanley Capital International (MSCI).

"By way of contrast, two of Asia's original 'tiger economies,' South Korea and Taiwan, were under review for an upgrade, but remained 'emerging markets.'

"In any case, rating Israel a developed market constitutes a vote of confidence in Israel's economy. It also means that developed market, index-tracking capital will be pouring into the Israeli stock market.

"Finally, even as far back as a decade ago, the Israeli stock market was covered not only by emerging market managers but also by mainstream technology investors. Israel's technology industry was that dominant.

"But with financial stocks, pharmaceutical and industrial chemicals each up approximately 20% of the MSCI Israel index, investing in this ETF is about more than just investing in the 'Nasdaq of the Middle East.'"

Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.