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Global gains: Banking bets from Down Under

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.

Continue reading Global gains: Banking bets from Down Under

Global gains: Outsourcing and Indian internets

I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, who have shared some of their top investment ideas. To view all of the stocks featured in this special global report, click here.

Global expert John Christy -- editor of the Forbes International Investment Report -- has been very successful in selecting Indian outsourcing companies; two such firms -- Infosys (NASDAQ:INFY) and Wipro (NYSE:WIT) -- are both strong performing holdings in his model portfolio in recent years.

A third player in the sector -- Sify (NASDAQ:SIFY) -- has not shared in that success. Christy explains, "Sify shares got off to a decent start last year. But like other emerging market stocks, they got clobbered in the sell-off last May. Problem is, unlike the rest of the group, Sify never bounced back."

However, the company's prospects may be changing. He notes, "Sify's outsourcing business serves global companies like GE, Oracle, and Whirlpool, as well as local blue-chips such as Ranbaxy Laboratories, Bharti, and Jet Airways.

"It runs a chain of internet cafés throughout India and a family of internet portals. It also provides broadband access to about 200,000 homes. Sify's internet backbone reaches 186 cities across the country.

Continue reading Global gains: Outsourcing and Indian internets

Global gains: Income from north of the border

I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.

Any investor who owned Canadian income trusts prior to the change in tax law that caused the sector to plummet can well understand the sentiments expressed by Canadian investment expert Gordon Pape who -- after speaking to investors at the World Money Show -- commented, "The Americans are angry. Very angry indeed!"

In an update on the trust situation, the editor The Internet Wealth Builder notes, "The recent Parliamentary Committee hearings into the income trust tax proposal were interesting but, in the end, nothing has changed. The government is going ahead with the plan and the legislation will pass."

"So it you were holding any faint hope that the bill might somehow be defeated, it is time to put those dreams aside and move on. That's what the financial professionals are doing."

In that light, the advisor has been looking at selected income trusts that despite the tax rulings remain buy recommendations. He explains, "We have been recommending that investors start to weed out the weaker trusts from their portfolios, retaining only the cream of the crop.

"I regard Yellow Pages Income Fund (Other OTC:YLWPF) as one of the strongest income trusts. It controls a powerful franchise and, as a result of the acquisition of Super Pages a couple of years ago, has a virtual monopoly position in Canada.

Continue reading Global gains: Income from north of the border

Global gains: Favorite ETFs for a rising sun

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 featured at the show, and I have been highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.

"As we head into 2007, some of the songs from 2006 will remain the same, chief among them the thirst for large-cap stocks in the established markets of the U.S., Europe, and Japan," says mutual fund and ETF expert Jim Lowell. "Of those three marketplaces, one stands out as not having participated in last year's global rally; Japan.

"Such a perspective isn't shared by any of its Pacific Rim neighbors or emerging market players, all of which have enjoyed nearly nonstop gains for several years in a row, and most of which are trading at recent or historical highs. Overall, that makes Japan interesting from both a valuation and a contrarian perspective."

Here, the editor of The Forbes ETF Advisor reviews his buy-rated Japan exchange-traded funds:

"Japan, the world's second largest economy, continues to recover nicely from its epic recession. It also continues to benefit from its location. The iShares MSCI Japan Index (NYSE:EWJ) covers nearly the entire market capitalization of the Japanese markets, but the ETF correlates most closely with the Nikkei 225 (Japan's equivalent to our S&P 500).

"Its top holdings include stocks such as Toyota Motor (NYSE:TM) and Sony (NYSE:SNE). Blue chips in the land of the rising sun haven't always risen; but I think there time has come.

Continue reading Global gains: Favorite ETFs for a rising sun

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Last updated: November 10, 2009: 06:46 AM

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