This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Look Around China for Investment Ideas

Stocks in this article: FXI HAO SPY EWY EWJ EWS EWM EWA

NEW YORK ( The FRED Report) -- One of our themes for 2011 at The FRED Report ( is that foreign markets will underperform the U.S. indices. At the same time, one of our longer-term themes is that Asia will be where much of the growth is in the future. How do we reconcile these two ideas?

We look at some long-term charts of the Asian markets and it seems that while China is the growth engine, the economies that sell to China are actually doing a bit better. We take a look at the FXI and HAO below. Notice that on both on this ETFs, the peak for these have been, so far, November of 2010, while the U.S. market has continued higher.

When we look at some of the other markets in the region, though, we see some stronger performance out of Asia . Notice that Korea (EWY) and Japan (EWJ) have followed the SPY up, and are leading China. Japan and Korea are two of the biggest manufacturers in the region.

Other countries in the region that look strong are EWS and EWM. These are not big manufacturing countries, though -- but as long as they trade ahead of China they are interesting alternatives to China for an Asian allocation.


One last country of note is Australia (EWA). In recent weeks, there have been some weather-related problems due to flooding in Queensland that may have held prices back. Sad as this situation may be, this appears to be a short-term problem in a strong economy that has Asian trade as well as a commodity orientation. While speculative, we see potential here as well.

The bottom line is we think investors with a long-term view should have a percentage of client assets in Asia. The countries mentioned above should provide some alternative ideas that could increase performance to ones portfolio.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs