I’m starting to think that some of the best deals may be outside the U.S. Foreign markets were punished twice by the hedge fund selloff – their share values were driven down and their currencies were hammered by repatriation of profits.
In addition to AA, I’m opening positions in:
Siemens AG (SI) – one of the largest European electronics/electrical engineering companies. Forward P/E 5.11, total debt 20% of annual revenues, and they pay dividends.
Rio Tinto (RTP) – miner, forward P/E 3.80. Somewhat troubling amount of debt, so I’ll keep this one small.
I’ll buy some Australian stocks, too, haven’t picked those yet. Maybe I’ll just get into EWA (although, it’s too heavy financials for my liking).
Generally speaking, miners are unfairly punished. Despite global recession, Chinese GDP growth is projected to be around 8% in 2009. India is growing fast, developed countries will only lose a percent or two. Basic material demand isn’t going anywhere. We need to clear the bubbliciousness of 2006-2007 and jump in.
