By Steve Halpern, The Money Show Digest
SARASOTA, Fla. (MSD) -- One need not venture into the unknown territory of foreign exchanges to invest abroad.
In the first week of February, nearly 11,000 investors from 22 countries converged at the World Money Show in Orlando to get investment advice and tips from advisers literally spanning the globe.
Many advisors speaking at the event affirmed the need to invest a portion of assets in global stocks. Here, we offer a variety of ideas collected from investment letter editors and analysts speaking at the conference. The focus was on showing investors how to gain the diversification and growth potential of international investing through U.S. listed shares and American Depository Receipts, ADRs.
"Following the tsunami, you'd think that Indonesia would be the last place to invest your hard-earned capital," says Neil George. "But you'd be wrong. He sees billions of dollars pouring into this country to rebuild and expand the infrastructure affected by the disaster. He notes that the country is one of the few OPEC members that still have vast, untapped oil and gas fields.
How to invest? Says Neil, "There are two ways to put some money to work here. First is the broad play on the local market through the closed-end Indonesia Fund . A second, more specific play, in addition to the closed-end fund play, is PT Telekomunikasi Indonesia /zigman2/quotes/206487502/composite TLK -0.54% , the main provider of local and long-distance telephone services."
Straszheim Global Advisors
Don Straszheim, former chief economist for Merrill Lynch, now runs a boutique research firm specializing in China. He notes, "We believe the fastest growing industry in China over the next decade will be environmental protection and improvement. He points to the fact that 16 of the 20 worst polluted cities in the world are in China.
"There must be 10,000, 'Love Canals' in China -- absolutely toxic bodies of water," says Don. The analyst notes there are two major global environment firms are involved, Halliburton /zigman2/quotes/210488727/composite HAL +1.39% and Asea Brown Boveri /zigman2/quotes/209404356/composite ABB -3.95% . He also points to four firms well positioned for the water-pollution market: ITT Industries /zigman2/quotes/203522138/composite ITT -1.75% , Danaher /zigman2/quotes/210555154/composite DHR +2.22% , Veolia Environment , and Suez SA .
Standard & Poor's
Ken Shea, chief global equity analyst for Standard & Poor's is particularly optimistic about growth in Asia. One favorite is China Mobile , a mobile phone operator with over 1 billion people in its service territory. "We see huge upside growth potential in these shares," Ken says. Japan's Yankgzo Coal , he adds, is benefiting from "the explosive demand in energy in China."
He's also a fan of Hong Kong-based Cosco Pacific /zigman2/quotes/207591135/delayed CSPKF -3.86% , a shipping company that is "aggressively investing in container ports in China and throughout southeast Asia." Finally, for U.S. investors, he likes Hitachi , which he calls the "GE of Japan."
Wall Street Winners
Elliott Gue takes a contrary stance on Japan, noting that after a 15-year bear market, the Japanese banking system has been purged of its bad debt. He likes the two sectors that were hit worst from the bear market -- banks and real estate. His top picks are Mistubishi-Tokyo Financial , which he thinks has gone the furthest among the Japanese banks in eliminating its bad debt and Sekisui House /zigman2/quotes/207746110/delayed SKHSY -2.19% , Japan's largest homebuilder.