This Day On The Street
Continue to site
ADVERTISEMENT
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

2013: Europe ETFs Will Disappoint, Asia Pacific Will Rally

In the past week, Chinese leadership has discussed support for “urbanization,” which almost certainly involves stimulus for infrastructure. Moreover, recent reports have said China will reaffirm its 7.5% growth outlook for 2013. Market-watchers know that this is the same percentage that was given for 2012, and that this likely signals determination to engineer the proverbial soft landing.

And there’s more. Unlike the developed world where bailouts and government expenditures are the primary reason for GDP expansion (if any), China’s economy is close to sustaining itself. Commodity prices such as steel have been on the rise and manufacturing has improved dramatically.

Selecting the Asia Pacific ETF that will work best for you may depend on risk tolerance, individual comfort and sector preferences. For example, iShares MSCI Australia (EWA) may be more comfortable for those who shy away from direct exposure to emerging markets. However, it’s fortunes are directly tied to materials demand from China. Meanwhile, if you find that you are comfortable with emerging markets — their low debt-to-GDP levels, low unemployment rates, strong GDP growth — then financially fit iShares MSCI Malaysia (EWM) may be a preferred destination.

One who is simply looking to access all of Asia with a low cost index should be intrigued by iShares All-Country Asia excl Japan (AAXJ). The current price is well above its 50-day and 200-day moving average. If you are concerned about buying AAXJ at its 52-week high, you might wait for a price pullback to the 50-day support level.

AAXJ 50 200 6 Months

You can listen to the ETF Expert Radio Show "LIVE", via podcast or on your iPod. You can follow me on Twitter @ETFexpert.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.

Gary Gordon reads:

Real Clear Markets
Jeff Miller
indexuniverse
Charles Kirk
On Twitter, Gary Gordon follows:

Jonathan Hoenig
Doug Kass
Hard Assets Investor
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%
YHOO $33.14 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs