Last week on fast money I recommended Avon ticker (AVP,quote) as my final trade as my thoughts into (yesterday’s)earnings were this was a company that was slowly but steadily reversing years of poor client focus, getting more efficient, and slowly moving down the road on settling onerous Federal bribe charges and potential SEC penalties as well.
Sometimes U.S. stocks are the natural way to play a business trend in the emerging world because they dominate a particular market. In other circumstances, we suggest the U.S. competitor as a proxy on a hard-to-reach sector. The global cosmetics industry gives us examples of both.
After trading sideways this year, Russian stocks have exploded into a 9% rally in the last three weeks. The factors driving Moscow back into the bullish camp were in focus in today’s Trading the Globe.
Oil is the heart of the modern Russian economy, but portfolios that reflect this bias also expose investors to boom-and-bust volatility.
Cosmetics maker Avon is trading flat after reporting that profits only increased 7% in the third quarter. This is a core emerging markets consumer play and could be setting up for a buy.