(MarketWatch) Markets enter a new week clinging to hopes that a “phase one” trade deal between the U.S. and China will hold together.
Analysts note that some sticking points and questions surround a tentative agreement, and cautious optimism seems the byword for Monday as stock futures creep higher.
It’s been a pretty rewarding year for many investors, and no one wants that derailed at the last minute by trade hiccups. Double-digit percentage gains for stock markets aren’t just limited to the U.S., with Europe and parts of emerging and Asian markets also having enjoyed a solid year.
Think international going forward, says our call of the day from Raj Sharma, private wealth advisor at Merrill Private Wealth Management. He’s been on Barron’s list of America’s Top Financial Advisors for 16 straight years through to 2019, and can also be found on Forbes’s 2019 Top 100 U.S. Wealth Advisors.
“The emerging consumer is a very durable investment theme,” says Sharma, who notes that the developed world’s population is shrinking and getting older, but emerging markets hold huge opportunity given the vast numbers of younger people.
He points out that India has over 1.2 billion people and 65% of the nation is under 35 years old. Investors can do well in these markets by figuring out what those consumers need to improve their lifestyles, and the items they will buy, such as billions of cars, he says.
“To do well consistently over time you have to be a bit contrarian in the way you look at things. If you always follow the hard dot, you’re likely to be disappointed,” Sharma says, noting that international stocks and emerging markets are selling at over a 30% discount to the U.S.
