10 Global Investing Strategies for 2013
Check out some of its ideas for this year or check out the full report from Morgan Stanley Smith Barney here. (The order is not indicative of preference.)
<b>1. Commodities and Gold</b>
Morgan Stanley said: Broadly speaking, the performance of commodities has significantly trailed that of other risk assets during the past year. With regard to gold, the accommodative policy stance of the worlds major central banks seems likely to continue to fuel concerns about future inflation and currency debasement. This, in turn, should spur investment demand for gold.
<b>2. Emerging Markets Bonds </b>
Morgan Stanley said: Emerging Markets bonds are one of the more attractive bond sectors. This asset class has undergone a rerating during the past several years because of improvement in the underlying credit quality of the sovereign issuers.
<b>3. U.S. Large-Cap Growth</b>
Morgan Stanley said: As with the global gorillas, large-cap stocks are better-positioned to benefit from established sales channels in emerging markets. Moreover, from a valuation perspective, large-cap stocks appear historically cheap relative to mid-and small-cap stocks.
<b>4. Dividend Aristocrats</b>
Morgan Stanley said: With money market interest rates and traditional safe haven bond yields likely to remain near record lows, dividend-paying equities should continue to provide an attractive alternative for income-seeking investors.
<b>5. Global Gorillas</b>
Morgan Stanley said: We believe that investing in large, DM companies with outsized exposure to the emerging marketswe call them global gorillas is another way to capture the growth from economies that expect to account for about 80% of global growth this year.
<b>6. Emerging Markets Equities</b>
Morgan Stanley said: Emerging market economies are on much better footing than their developed-market counterparts, due to growing middle-class consumer sectors that support domestic demand.
<b>7. Investment Grade Credit</b>
Morgan Stanley said: Investment grade corporate bonds continue to offer an attractive combination of yields that are higher than those on traditional safe havens, such as U.S. Treasuries, and high credit quality.
<b>8. High-Quality Municipal Bonds</b>
Morgan Stanley said: In light of the outlook for subpar economic growth, which will continue to strain state and local government finances, we favor high quality (rated A or better) general-obligation and essential-service revenue bonds rated BBB or better with maturities of five to 11 years.
<b>9. Water</b>
Morgan Stanley said: We continue to favor the investment prospects for watera finite resource that is not always available where it is needed.
<b>10. Master Limited Partnerships</b>
Morgan Stanley said: MLPs are concentrated in natural-resource industries such as oil, natural gas and minerals extraction. They are attractive to income-seeking investors