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Emerging Markets: Ready for Takeoff?

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Welcome to Episode #93 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist and also editor of the Large Cap Trader, to discuss what is going on in the emerging markets.

The Emerging Markets ETF (EEM - Free Report) has been ignored by investors for years, and for good reason. The ETF has been in a narrow trading range for nearly ten years. But recently, market technicians have noticed that it has broken out.

The narrative is changing. The emerging markets, including the BRICS, are back.

How should you invest to take advantage of this breakout?

Stocks to Buy for the Breakout

1.      Yandex (YNDX - Free Report) is the Google of Russia but it also recently entered into a partnership with Uber to create a new company that will be worth about $3.4 billion after the deal closes. It will provide ride sharing services in Russia, Eastern Europe and Central Asia.

2.      Qiwi (QIWI - Free Report) is a Russian online payment company headquartered in Cyprus.

3.      MercadoLibre (MELI - Free Report) is the Amazon of Latin America. Sales are expected to rise over 50% this year but it’s in competition with Amazon itself in both Mexico and Brazil, two of its largest markets. Estimates were recently cut as analysts got a little too bullish on the earnings story.

4.      Baidu (BIDU - Free Report) is one of China’s biggest search engines. The emerging countries are developing their own technologies to leap into the future. But should you be a “buy and hold” investor on the big Chinese names?

There are other ways to play the emerging market breakout as well. Warren Buffett has been buying in the transportation sector.

Airlines: Secret Key to Emerging Market Growth?

With a growing middle class, the airlines are playing a bigger role in the emerging markets. You see it in the growth of airlines and construction of new airports. Both bring a lot of good paying jobs.

Tracey and John discuss ways an investor can “play” this aspect of the breakout without actually buying the airlines. They look at airline leasing companies and even some airports that are publicly traded.

What else should you know about how to invest in the emerging markets?

Find out on this week’s podcast.

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