Each quarter Bloomberg asks a group of trading heavy-weights for their best picks. Given we’re in a recession and pandemic, this year’s suggestions have been quite interesting.
Sarah Ketterer of Causeway Capital Management suggests that some of the market’s worst performers for the year are bank stocks, especially in Europe. The best European banks are currently trading at record low valuations but their balance sheets are in a good position to absorb most outcomes. For that, Bloomberg suggests looking into iShares MSCI Europe Financials ETF (EUFN), an ETF which holds some of the largest banks in Europe.
Terri Spath of Sierra Mutual Funds says that research shows in the years when the American currency is relatively weak, shares abroad go up 85% of the time. It’s because of this that they believe iShares MSCI Emerging Markets ETF (EEM) which tracks companies in China, Korea, India and Taiwan is a good option. Going a step further, they believe that investing in Taiwan via iShares MSCI Taiwan ETF could also be a good play.