After multiple companies with Macao exposure reported disappointing earnings over the past few weeks, investors may be questioning their investments. Is now time to bolt from this sector?
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.
We’ve seen a real bloodbath in the emerging markets, but multinational consumer stocks that have been in these countries for a long time look largely insulated from both Chinese sluggishness and the euro madness. We talk about defensive growth today on Trading the Globe (10:20 ET, CNBC).
Now that there are two broad exchange-traded funds out there that track emerging markets consumer choices, traders need to make a strategic choice of their own: bet on drinkers or bet on drivers.