Make Sure You Have Enough International Exposure

Ian Wyatt at SmallCapInvestor was kind enough to interview me the other day. Here’s a snippet of our conversation:

Ian: Louis you’re one of the best-known investment experts in America today with your best-known service, Blue Chip Growth, around since 1998. There’s been a lot of talk about emerging markets, particularly China, as the place to be for growth. What do you see as the future for investing in solid, blue chip stocks?

Louis: You know I’m a growth guy through and through. I am extremely excited about the growth in China because it has created a real sweet spot for my strategy and my subscribers. That’s why I’ve recommended a number of stocks that are either based in China or are U.S. stocks that are capitalizing on the growth there.

The average Chinese stock doubled from December 31 to August 1, and I expect a lot of future growth from Chinese blue chips in the coming months as industrial production increases. Due to a weak U.S. dollar right now, we should see China’s exports really take off.

But I think China’s explosive growth could be duplicated in other emerging markets, too, so I encourage investors to think about other regions as well. The bottom line is that if you want to be a successful investor in blue chip stocks, you have to keep an eye on your international exposure and make sure you have enough of it. But, China certainly isn’t the only option for this right now. There’s money to be made throughout Latin America and Asia.

For instance, I’m very bullish on Sociedad Quimica y Minera (SQM). This Chilean chemical company is one of the world’s top lithium suppliers. Lithium is used in electronics like laptops and cell phones, but most importantly is a component of the fast-charging batteries in hybrid autos. My Blue Chip subscribers have made a hefty 40% profit in just a few months in SQM, and the stock is one of my Top 5 Buys for October.

This is a perfect example of how to find the opportunity in international blue chips.

Thanks Ian. You can read the entire interview here.

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