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Best ETFs for 2018: Look to Emerging Markets

The following is an excerpt from Best ETFs for 2018: iShares Emerging Markets Dividend ETF Will Shine, originally published on InvestorPlace.

It has been an ugly decade for most emerging markets. As a sector, they’ve been beaten like the proverbial red-headed stepchild.

First, there was the 2008 meltdown. As the old Wall Street maxim goes, when the United States sneezes, the developing world catches a cold. That’s pretty well sums up what happened during our mortgage crisis. In 2008, the S&P 500 lost about 37% of its value. The popular MSCI Emerging Markets index lost fully half of its value.

But then, a funny thing happened. The U.S. economy finally hit bottom, and U.S. stocks began an epic rally that continues to this day.

Alas, I can’t say the same for emerging markets. About the time the U.S. economy stabilized, Europe slid into a major crisis with Greece and the other “peripheral” economies that would last, off and on, for the next four years.

Europe, like the U.S., is an important export market for many emerging markets. So weakness in the Old World put a major wet blanket on an emerging market recovery.

And if only that were the end of it…

We also had a major commodities and energy bust, major unrest in the Arab world and a string of corruption scandals in Latin America … all of which sent investors running for the doors.

But then, a funny thing happened. By early 2016, the bad news was finally fully priced in, and emerging markets found a bottom. It has been off to the races ever since.

If you time a bull market in emerging market stocks correctly, you can make an absolute killing, doubling or tripling your position or more in just a few years. And I believe that’s the position we find ourselves in today. After years of chaos and upheaval, emerging markets are finally ready to shine again.

To read the rest of the article, see  Best ETFs for 2018: iShares Emerging Markets Dividend ETF Will Shine,

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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Time to Load Up on International Dividend Stocks

The following is an exerpt from 10 Top Dividend Stocks From Around the World, orginally published by Kiplingers.

The United States of America is one of the largest wealth creation machines in the history of the world. According to Credit Suisse, American stocks returned an inflation-adjusted annualized 6.5% between 1900 and 2014 – behind only Australia and South Africa, which lead all international stocks at 7.4% each. Go, ‘Merica!

But while American stocks have been the better long-term bet, they’re not always the best bargain. In fact, the U.S. market is priced to deliver subpar returns over the next decade, whereas many international stocks are downright cheap.

The cyclically adjusted price-to-earnings ratio (“CAPE”) is more than double its long-term average. And according to John Del Vecchio, co-manager of the AdvisorShares Ranger Equity Bear ETF (HDGE), “The median price/sales ratio on the S&P 500 is the highest it has ever been in history. We are three standard deviations above the average. You don’t need to be a math whiz to understand that this is a big deal.”

But while U.S. stocks are looking bubbly, investors can find bargains overseas.

“The U.S. market has been the best performing stock market in the world since the Great Financial Crisis, but that has led U.S. stocks into expensive territory,” says Meb Faber, chief investment officer of Cambria Investment Management. “The good news is that historically, U.S. vs. foreign stock outperformance is a coin flip in any given year. And with valuations abroad being much lower (particularly in emerging markets), we could see foreign stocks outperform over the next several years and even accelerate.”

Today, we’ll look at 10 solid international dividend stocks for investors looking to add foreign exposure to their portfolios. Investors will want to note that international taxes may apply, and that overseas stocks have much more varied payout schedules than the balanced quarterly routine of most U.S. companies. Still, even if Wall Street defies the laws of gravity and continues to outperform its international peers, these stocks will provide a steady stream of dividend income while we wait for market leadership to shift.

To read more, see 10 Top Dividend Stocks From Around the World.

 

Disclaimer: This material is provided for informational purposes only, as of the date hereof, and is subject to change without notice. This material may not be suitable for all investors and is not intended to be an offer, or the solicitation of any offer, to buy or sell any securities nor is it intended to be investment advice. You should speak to a financial advisor before attempting to implement any of the strategies discussed in this material. There is risk in any investment in traded securities, and all investment strategies discussed in this material have the possibility of loss. Past performance is no guarantee of future results. The author of the material or a related party will often have an interest in the securities discussed. Please see Full Disclaimer for a full disclaimer.

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