Passage to India – India ADR Stocks !!!

The stock market in India crashed recently. The market called the BSE Sensex (Bombay Stock Exchange) crashed from an all-time high of 21206 to 18,242 on Friday. On Jan 22nd, it fell 9.75% nearly 2000 points at the open. The market was halted for an hour and then reopened to recover some 700 points.

Link on Sensex:
http://finance.yahoo.com/q/bc?s=%5EBSESN&t;=1y&l;=on&z;=m&q;=l&c;=

After making investors happy with returns of 40%,50% in the past few years, the Sensex is now returning back to “normal” levels. The P/E ratio of the Sensex is the highest among emerging markets and the yield is less than 1%. This is pretty low when compared with yields of over 3% in Thailand, Singapore and other Asian countries.

There are many Indian stocks trading as ADRs in the US. A few of them are listed below. As mentioned above due to high volatility and sky high P/E ratios, these stocks may “fluctuate” a lot.So invest after doing some detailed due diligence and tread carefully venturing into the Indian markets.

Indian ADR stocks (IT and other stocks excluded):

1. Dr Reddy’s Laboratories – Pharma – RDY

2. HDFC Bank – Banking – HDB

3. ICICI Bank – Banking – IBN

4. Sterlite Industries – Metals – STI

5. Tata Motors – Cars – TTM

Resource-Rich ETFs !

Last year commodities and natural resources were the biggest winners.This year it is is possible that this might repeat again due to heavy high demand from developing countries for commodities such as copper,tin,potash etc.

One way to gain some exposure to commodity stocks is to invest in the following ETFs:

1. ishares MSCI Australia Index – EWA
2. ishares MSCI Canada Index – EWC
3. ishares MSCI Chile Index – EWO
4. ishares MSCI Brazil Index – EWZ


How to invest in Australia?

Two simple and easy ways to get some Australian stocks exposure to your portfolio are to pick some:

1. ishares Australia ETF – EWA
This ETF is a consistent and highly ranked ranked for many years.Has over4% yield.

2. Aberdeen Australia Equity Fund Inc. – IAF
A closed-ended fund with medium size assets. Good performer as well.

Bombshells (ADR Stocks) of Brazil !!

Brazilian ADRs are hot on WallStreet for the past few years due to their incredible growth.

The largest bank in Brazil is government-owned. There are quite a few private sector banks that are fueling credit growth in Brazil and across Latin America.

The largest private sector bank is Banco Bradesco: BBD

Yesterday the bank reported that their 4th Quarter profit soared over 38% to $1.2 B. More details here:
http://biz.yahoo.com/ap/080128/earns_brazil_bradesco.html?.v=1

The stock split 2: 1 last year at $40.Now its trading at $27+. BBD has grown over 700% in the past 5 years.

Other Brazilian banks trading as ADRs in the US are:

Banco ITAU – ITU
Uniao de Bancos Brasileiros S.A. – UBB

More on these later…..

Food and Beverage ADR stocks !!

Consumer stable stocks are an integral part of any well-built portfolio. They offer stable, long-term,steady growth and act as a counter-weight to the portfolio when the markets go south. These companies have stable growth because people spend money on foods and to some extent beverages like beer in good times and bad.

There are a few food and beverage stocks that worth looking into.UK’s Sainsbury stores, Australia’s Fosters beer company are some examples.

For more information on food and beverage adr stocks go to:

https://www.topforeignstocks.com/Hi-Growth-Portfolio-FoodandBev.htm