Saturday, October 09, 2010

Just One ETF: Small-Cap Makes for a Brazilian Consumer Play

Guest article

Recently I finished an interview with SeekingAlpha's Jason Aycock on my single highest-conviction ETF position. Here's the text from that interview:

Which single asset class are you most bullish (or bearish) about in the coming year? What ETF position would you choose to best capture that?
The previous 12 months for the U.S. equity markets were modestly profitable, but in large part the rebound from March 2009 has tapered off substantially. The markets have regressed into a choppy pattern, which makes it the perfect environment for selective and active investment. At the same time, periods of uncertainty still loom across the globe, so individual business risks remain high. In my view, the active investor will find the optimal performance using targeted exchange-traded funds (ETFs) that focus on emerging markets.

The single asset class that I believe will outperform over the next 12 months is small-cap Brazil stocks, as represented in...

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