On July 7, 2010, Agricultural Bank of China (AgBank) priced its first public share issue. The bank, which operates nearly 24,000 branches, will sell 25 billion shares on the Hong Kong Stock Exchange for HK$3.20 ($0.41 U.S.), and 22 billion shares on the Shanghai exchange for 2.68 yuan ($0.40 U.S.).

Strong investor interest in China, whose economy grew 11.9% in the …read more »

When you join Pat McKeough’s Inner Circle, you get to address investment questions directly to me and my research associates; AND you get to see all other members’ questions, and our answers (of course, we eliminate any personal information).

Plus, you get all 4 of my investment advisories, including Wall Street Stock Forecaster, our newsletter that covers the U.S. markets. …read more »

In the first quarter of 2010, India’s economy grew by 8.6% compared to the same period last year. That’s the world’s second-fastest growth rate. Only China, with an 11.9% expansion, saw stronger growth.

India’s gain was largely the result of a 16.3% increase in manufacturing, as the country continued its faster-than-expected recovery from the global economic slowdown.

India’s strong economic …read more »

Investor concerns continue to mount over high debt levels in many European countries. That’s especially true of the so-called PIIGS countries (Portugal, Italy, Ireland, Greece and Spain).

Right now, the European Union and International Monetary Fund are working on a bailout of Greece. However, negotiations are moving slowly, mainly because Germany, which would shoulder most of the bailout, is insisting that …read more »

When we’re picking stocks to recommend in our newsletters, including Wall Street Stock Forecaster, our publication that covers the U.S. markets, we like to see companies that benefit from steady revenue streams from high-quality assets, long-term contracts or other reliable sources.

That’s because this type of revenue helps cut a stock’s risk. It also cuts its exposure to the ups and …read more »

Exchange-traded funds (ETFs) have gained popularity in recent years, mainly because many ETFs offer very low management fees. In addition to low fees, the best ETFs offer well-diversified, highly tax-efficient portfolios.

However, quality varies. The investment industry has created all sorts of ETFs. All too many exist to tap into popular, but risky, themes and fads, so you need to be …read more »

CLAYMORE/ALPHASHARES CHINA SMALL CAP INDEX ETF $28.32 (New York Exchange symbol HAO; buy or sell through brokers) is an ETF that aims to track the AlphaShares China Small Cap Index. This index is made up of all investable Chinese stocks with market caps between $200 million and $1.5 billion.

The $373.6-million fund’s top holdings are Air China, 1.9%; Semiconductor Manufacturing, 1.8%; …read more »

Global stock market investing still remains riskier in many ways than investing in North America. That’s because many foreign countries, particularly China and other emerging markets, have language barriers and weaker investor-protection laws. They may also have less commitment to openness, fairness and so on.

You can lower your risk by sticking with American Depositary Receipts (ADRs). An ADR is an …read more »

VANGUARD EMERGING MARKETS ETF $38.72 (New York symbol VWO; buy or sell through brokers) aims to track the MSCI Emerging Markets Index, which is made up of common stocks of companies located in emerging markets around the world. The fund has an MER of 0.27%.

The fund’s top holdings are China Mobile (China: wireless), Gazprom (Russia: gas utility), Samsung Electronics (South …read more »

SPDR S&P CHINA ETF $67.30 (New York Exchange symbol GXC; buy or sell through brokers), is an ETF that aims to track the S&P China BMI Index. This index is made up of all of the publicly traded Chinese stocks that are available to foreign investors. Right now, this ETF holds 136 stocks.

The $548.9-million fund’s top holdings are: China Mobile, …read more »

ISHARES FTSE/XINHUA CHINA 25 INDEX FUND $38.90 (New York Exchange symbol FXI; buy or sell through brokers) is an ETF that aims to track the FTSE/Xinhua China 25 Index, which is made up of the 25 largest and most liquid Chinese stocks. All of the stocks in the index trade on the Hong Kong exchange. Some also trade as American …read more »

Chinese stocks have fallen about 10% since the start of this year, even though China’s economy continues to grow rapidly. Lower U.S. markets are part of the reason for the drop, but investors also worry that the Chinese government may raise interest rates to slow inflation. That could dampen growth.

However, the long-term outlook for China, and Chinese stocks, is strong. …read more »

High-quality foreign stocks are a great way to diversify your portfolio. Moreover, many emerging markets, like China and India, have strong growth prospects. That’s because their people are generally younger than North Americans, and more of them have the potential to advance into the middle class.

Even so, global stock market investing remains riskier than investing in North America. That’s because …read more »

On January 22, Wall Street Stock Forecaster, our newsletter that focuses on the U.S. stock markets, will unveil a stock with the right mix of strong fundamentals and technological know-how to earn big profits in 2010 and beyond. In fact, we think this company’s prospects are so bright we’ve named it Wall Street Stock Forecaster’s #1 stock pick for the …read more »

ISHARES MSCI EMERGING MARKETS EASTERN EUROPE INDEX FUND $29.16 (New York Exchange symbol ESR; buy or sell through brokers), is an ETF that aims to track the MSCI Emerging Markets Eastern Europe Index. The fund’s geographic breakdown is as follows: Russia, 74.6%; Poland, 12.9%; Czech Republic 6.4% and Hungary, 6.1%.

iShares MSCI Emerging Markets Eastern Europe Index Fund’s top holdings are …read more »

ISHARES MSCI BRAZIL INDEX FUND $77.79 (New York Exchange symbol EWZ; buy or sell through brokers), is an ETF that is designed to track the Brazilian stock market.

The fund’s top holdings are Petrobras preferred shares (energy), 12.5%; Petrobras common shares, 10.2%; Cia Vale do Rio Doce (mining) preferred shares, 9.4%; Cia Vale do Rio Doce common shares, 7.0%; Itau Unibanco …read more »

Investing outside of Canada and the U.S. can expose you to more volatility and risk. That’s why we still think mutual funds are the best way for most investors to access these areas. And you can cut your costs by purchasing high-quality international exchange-traded funds (ETFs) like these two:

ISHARES MSCI BRAZIL INDEX FUND $77.79 (New York Exchange symbol EWZ; buy …read more »

Exchange-traded funds (ETFs) offer investors more benefits than ever before, mainly because of increased competition. That can make them good choices for certain parts of your portfolio — such as the portion you devote to global stock market investing.

That’s because directly investing in foreign markets can be complicated and risky, and high-quality ETFs let you make global stock market investments …read more »

ISHARES S&P INDIA NIFTY 50 INDEX FUND $25.51 (Nasdaq symbol INDY; buy or sell through brokers), is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities on the National Stock Exchange of India.

The fund’s top holdings are: Reliance Industries (conglomerate), 13.0%; Infosys Technologies (software), 7.9%; ICICI Bank, 6.9%; Larsen …read more »

ISHARES MSCI CHILE INVESTABLE MARKET INDEX FUND $51.79 (New York Exchange symbol ECH; buy or sell through brokers), is an ETF that aims to track the MSCI Chile Investable Market Index. This index consists of stocks that are mainly traded on the Santiago Stock Exchange.

The fund’s top holdings are Empresas Copec SA (conglomerate), 12.9%; Empresa Nacional de Electricidad (electric power), …read more »

ETFs have added to their advantages over closed-end funds over the last few years. That’s because ETFs have evolved, and competition has increased. Still, there are a lot of ETFs that have been created to tap into popular, but risky, themes and fads, so you need to be very selective with your ETF holdings. But the best ETFs offer a …read more »

ISHARES MSCI GERMANY FUND $22.95 (New York Exchange symbol EWG; buy or sell through brokers) is an ETF that aims to track the MSCI Germany Index. This index aims to capture 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly because of limitations on foreign ownership.

The fund’s top holdings are …read more »

ISHARES MSCI SOUTH KOREA INDEX FUND $46.06 (New York Exchange symbol EWY; buy or sell through brokers), is an ETF that aims to track the MSCI Korea Index. The index aims to capture 85% of the total market capitalization of the South Korean stock market. The other 15% is unavailable for investment, partly due to limitations on foreign ownership.

The fund’s …read more »

ISHARES MSCI EMERGING MARKETS INDEX FUND $41.85 (New York symbol EEM) is a good subsititute for TEMPLETON EMERGING MARKETS FUND $19.70 (New York symbol EMF). Switch.

ISHARES MSCI SOUTH KOREA INDEX FUND $46.06 (New York symbol EWY) is a good replacement for KOREA FUND $34.16 (New York symbol KF). Switch.

ISHARES MSCI GERMANY FUND $22.95 (New York Exchange symbol EWG) is a …read more »

ISHARES MSCI EMERGING MARKETS INDEX FUND $41.85 (New York Exchange symbol EEM; buy or sell through brokers), is an ETF that aims to track the MSCI Emerging Markets Index.

The fund’s geographic breakdown includes: Brazil, 14.8%; South Korea, 12.4%; China, 11.2%; Taiwan, 10.4%; South Africa, 8.1%: Hong Kong, 6.8%; Russia, 6.3%; India, 6.0%; Mexico, 4.6%; and Israel, 3.3%.

iShares MSCI Emerging Markets …read more »

The U.S. dollar is down 22% against the Canadian dollar so far this year. Many investors fear it will keep falling.

If you knew the U.S. dollar would keep falling, the best strategy would be to sell all of your U.S. stocks and buy them back when the dollar stabilizes. However, you don’t know where the U.S./Canada exchange rate is …read more »

EUROPEAN EQUITY FUND $6.72 (New York symbol EEA; CWA Fund Rating: Conservative) should gain from a continued economic recovery in Europe, particularly in Germany and France, the two countries where it has 50% of its investments. Germany grew 1.3% in the second quarter of 2009, and France grew 1.4%.

European Equity Fund mainly invests in large-capitalization European stocks in the 16 …read more »

During the 1990s, many investors held to a fixed idea that global stock market equities would be more profitable than North American stocks. This was especially true, so they claimed, of companies based in China, India and other emerging markets.

We advised our readers to resist investing heavily in emerging markets during those years. Instead, we recommended that investors look …read more »

UNITED CORPORATIONS $47.20 (Toronto symbol UNC) (165 University Avenue, 10th Floor, Toronto, Ontario M5H 3B8. 416-947-2583. Buy or sell through a broker) invests in a wide variety of average- to above-average quality Canadian and foreign stocks.

United Corporations holds 39.9% of its $752.4-million portfolio in Canadian equities, 21.1% in the U.S., 23.1% in Europe, 8.1% in Asia, 6.6% in the U.K., …read more »

NEW IRELAND FUND $6.98 (New York symbol IRL; Shares outstanding: 7.2 million; Market cap: $50.3 million; CWA Rating: Aggressive) invests in Irish companies. Bank of Ireland manages the fund.

Lower housing prices and a struggling banking sector have hurt the Irish economy. However, the country is open to foreign investment, and has invested heavily in education and training. It is also …read more »

INDIA FUND $26.02 (New York symbol IFN; Shares outstanding: 38.6 million; Market cap: $1.0 billion; CWA Rating: Aggressive) mainly invests in large-cap Indian stocks. Blackstone Group manages the fund.

India’s economy has grown by more than 9% annually over the last few years. The global recession has hurt the country’s growth, but it could still expand by as much as 6% …read more »

SINGAPORE FUND $11.65 (New York symbol SGF; Shares outstanding: 9.5 million; Market cap: $110.7 million; CWA Rating: Aggressive) is fully invested in Singapore-based stocks. The Development Bank of Singapore manages the fund.

Singapore relies on exports for much of its growth. Major markets, like the U.S., China and Japan, are important to its economy. As these markets recover, Singapore’s prospects should …read more »

Around the world, governments have increased spending in a bid to counter the recession. These efforts are now starting to show results. Global economic growth is resuming, and top-quality foreign stocks have rebounded.

Here are four closed-end funds that trade on the New York exchange at discounts to their net asset values. All four funds have risen lately, but we still …read more »

Around the world, governments have increased spending in a bid to counter the recession. These efforts are now starting to show results. Global economic growth is resuming, and top-quality foreign stocks have rebounded.

Here are four closed-end funds that trade on the New York exchange at discounts to their net asset values. All four funds have risen lately, but we still …read more »

Japan is heading into an election on August 30. Polls show the Democratic Party of Japan stands a good chance of defeating Prime Minister Taro Aso’s Liberal Democratic Party in the Japanese parliament’s lower house.
To spur economic activity, the Democratic Party of Japan plans to push for more aggressive stimulus spending, such as allowances for families with children, free …read more »

TEMPLETON EMERGING MARKETS FUND $17.44 (New York symbol EMF; CWA Fund Rating: Speculative) is a closed-end fund that invests in equities from emerging economies. Franklin Templeton manages the fund.

Templeton Emerging Market Fund’s holdings are spread around the world. Despite its volatility, the fund gives investors access to countries like Brazil, China, India and others that still have strong growth prospects.

The …read more »

NEW GERMANY FUND $9.91 (New York symbol GF; CWA Fund Rating: Speculative) is a closed-end fund that mostly invests in small- and mid-cap German equities. The fund’s manager is Deutsche Asset Management.

The $210-million fund’s holdings operate in Germany (91%) and the Netherlands (9%).

The New Germany Fund’s top holdings are European Aeronautical Defense (Netherlands: aerospace and defense), 5.9%; Bilfinger Berger (construction …read more »

KOREA FUND $31.74 (New York symbol KF; CWA Fund Rating: Speculative) is a closed-end fund that invests at least 80% of its assets in Korean equities. Currently, it is entirely invested in South Korean stocks. RCM Asia Pacific manages the fund.

Korea Fund’s top holdings are Samsung Electronics at 14.1%; Posco (steel), 5.7%; LG Electronics, 5.1%; LG Corp. (conglomerate), 4.8%; Hyundai …read more »

CENTRAL EUROPE AND RUSSIA FUND $27.69 (New York symbol CEE; CWA Fund Rating: Speculative) is a closed-end fund that mostly invests in larger cap stocks from Russia and central Europe. The fund’s manager is Deutsche Asset Management.

The $394-million fund’s holdings are invested in Russia (55%), Poland (13%), Turkey (13%), Czech Republic (11%), Hungary (4%), Austria (3%) and Kazakhstan (1%).

The fund’s …read more »

For years I’ve advised our readers to resist the temptation to invest in emerging markets. I felt you could get all the global diversification you need with a portfolio of 75% Canadian stocks and 25% U.S. stocks.

Of course, I advised sticking to our three-part philosophy: invest mainly in well-established companies, spread your money out across the five main sectors, and …read more »

Investing outside of Canada and the U.S. can expose you to more volatility and risk. The sharp downturn in many foreign markets during the global recession proves this. But there are still countries and regions that offer lots of growth potential and opportunities for diversification.

We still think that mutual funds, rather than individual stocks, are the best way for most …read more »

INDIA FUND $31.48 (New York symbol IFN; Shares outstanding: 38.6 million; Market cap: $1.2 billion; CWA Rating: Aggressive) has issued one right to shareholders for each share they own.

The subscription price per share will be equal to 95% of the fund’s net asset value per share when the offer expires on August 14, 2009. Shareholders will be able to buy …read more »

TIM HORTONS $28.93 (Toronto symbol THI; SI Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 181 million; Market cap: $5.2 billion) operates 3,457 coffee-and-donut shops, including 2,930 in Canada and 527 in the U.S., where the company is incorporated, despite the fact that the U.S. accounts for less than 10% of its revenue.

Tim Hortons was a wholly owned subsidiary of U.S.-based Wendy’s …read more »

CHILE FUND $15.63 (New York symbol CH) (CWA Rating: Aggressive) is a closed-end fund that invests primarily in Chilean stocks.

Prices for copper, a key commodity for Chile, are now at $2.31 U.S. a pound, down from the all-time highs of over $4 U.S. they reached in June, 2008. Chile is a major exporter of copper, particularly to Asia. In fact, …read more »

TOYOTA MOTOR CO. ADRs $76 (New York symbol TM; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.6 billion; Market cap: $121.6 billion; Price-to-sales ratio: 0.6; WSSF Rating: Above Average) is the world’s largest carmaker. Japan accounts for 47% of its revenue, followed by North America (24%), Europe (12%) and Asia (10%).

In the fiscal year ended March 31, 2009, …read more »

HONDA MOTOR CO. ADRs $27 (New York symbol HMC; Conservative Growth Portfolio, Manufacturing & Industry sector; ADRs outstanding: 1.8 billion; Market cap: $48.6 billion; Price-to-sales ratio: 0.5; WSSF Rating: Above average) is Japan’s second-largest carmaker. It’s also the world’s largest motorcycle producer.

Honda sold 3.5 million vehicles in fiscal 2009. That’s down 10.4% from 3.9 million in the prior year. However, …read more »

UNITED CORPORATIONS $46.50 (Toronto symbol UNC) (165 University Avenue, 10th Floor, Toronto, Ontario M5H 3B8. 416-947-2583. Buy or sell through a broker) invests in a wide variety of average- to above-average quality Canadian and foreign stocks.

United Corporations’ $676.1-million portfolio is invested 35.3% in Canadian equities, 23.7% in the U.S., 20.2% in Europe, 12.5% in Asia, 6.3% in the U.K. and …read more »

JAPAN EQUITY FUND $4.79 (New York symbol JEQ; CWA Rating: Aggressive) mostly invests in large-capitalization stocks on the Tokyo Stock Exchange. The fund’s top holdings include: Toyota Motor, Mitsubishi UFJ Financial Group, Honda Motor, Sony Corp., Sumitomo Corp. and Panasonic Corp.

Japan Equity Fund sells for 15% less than the value of its assets. It’s a buy.
…read more »

JAPAN SMALLER CAP FUND $6.95 (New York symbol JOF; CWA Rating: Aggressive) mainly invests in less-widely followed Japanese over-the-counter stocks. The fund’s top holdings are: The Chiba Bank, Hitachi High-Technologies Corp., Moshi Moshi Hotline, Inc., Daibiru Corp., Fuyo General Lease Co. and Taiyo Yuden Co.

The fund sells for a 13% discount to the value of its assets.

Japan Smaller Cap Fund …read more »

Like other stock markets around the world, Japanese markets remain volatile. Moreover, the slow U.S. economy continues to hurt Japan’s major export industries. However, we think that Japan’s interest-rate cuts and its recently enacted $143.7-billion U.S. stimulus package will keep stock prices rising.

JAPAN EQUITY FUND $4.79 (New York symbol JEQ; CWA Rating: Aggressive) mostly invests in large-capitalization stocks on the …read more »