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When I said to "forget about stocks" earlier, I was talking about U.S. stocks. Elsewhere, major opportunities are emerging on a macro front. The BRIC economies have held most American investors' attention for the last few years, but that's not the market that looks the most attractive right now. Instead, there's significant relative strength in Mexico right now; the way to play that is the
iShares MSCI Mexico ETF(EWW).
While Mexican stocks do suffer from some correlations with the S&P 500, the country's technical robustness has helped to maintain an edge over the U.S. market. As one of our major trading partners, it's also one of the biggest beneficiaries of the dollar strength that we've seen since uncertainty crept back into the market; a bullish U.S. dollar means positive foreign exchange gains for Mexican companies.
Obviously, that argument doesn't hold up under the inflationary scenario that makes gold so attractive. But that's a longer-term possibility on a more intermediate term, U.S. markets are likely to remain anxious and the popularity of the anti-stock trade should keep the dollar at high levels. Look to EWW as an above average way to play macro strength in stocks.