It’s easy to understand why investors tend to flock to the S&P 500 when searching for stocks to watch. It’s dependable and captures the pulse of the American corporate economy.
But what about traders who are a little more adventurous?
Emerging market stocks are leading right now, meaning a lot of money is moving into international economies.
Since I like to think outside of the box, I thought I’d give you a heads up and show you how Chinese retailers are making major headway in 2021. That includes how you can potentially profit from emerging market stocks.
Emerging markets are markets that have some of the qualities of a developed market, but don’t fully meet the standards. These could develop into markets in the future or even be ones from the past.
I believe the global economy is going to pick up over the next several months. We’re already starting to see emerging market stocks outperform the broader U.S. market.
Just take a look at the Vanguard Emerging Markets Stock Index Fund ETF (NYSEArca: VWO) or the iShares MSCI Emerging Markets ETF (NYSEArca: EEM). Both of these emerging markets have been rising, along with small-cap stocks that have a lot more exposure to overseas markets.
And with a Democrat moving into the White House in January, the odds of seeing more strength from emerging market stocks out of China are strong.
The two emerging market stocks I’m giving away today saw massive upside under the Trump administration. But I believe they will continue to experience steady growth because President-elect Joe Biden plans to take things easier on China to put less pressure on the global economy.
If you’ve been keeping up with my daily videos, then one of these emerging market stocks to watch shouldn’t be any surprise to you. I talked about the ticker in this video.
It’s a cross between eBay Inc. (Nasdaq: EBAY) and Amazon.com Inc. (Nasdaq: AMZN). And for all you trivia buffs out there, it was also the first major Chinese e-commerce stock to trade on the Nasdaq 100.
Pretty cool, right?
Check out my short video to reveal the two emerging market stocks to watch in 2021 and then be sure to leave your thoughts in the comment section below.