Tickers in this Article: EFA, PCN, CCX, ABCS, FAX, EWC, ECA, RY, RCI, CNDA, EWW, MEXS
With various debt situations and slowing economic growth beginning to really rattle investors, many are looking for ways to power their portfolios through the mess. Bond king Bill Gross may have the answer. As the manager of the PIMCO's $240 billion total return fund and various closed-end funds like the PIMCO Corporate Income Fund (NYSE:PCN), when Gross speaks about the global markets, investors tend to listen. Aside from his recent bearish bets on U.S. treasuries, the PIMCO head honcho has recently been making recommendations on what regions of the world will fare the best in the upcoming years. For investors, taking his advice could do a portfolio a world of good. (For more, check out Open Your Eyes To Closed-End Funds.)

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Taking Gross' Advice
Continuing with his bearish stance on U.S. treasuries, Gross believes that the recent 10-year Treasuries rates of a 2.25% are "discounting a heap of trouble," and that "neither investor nor borrower may emerge from this brouhaha unscathed." Overall, Gross is worried that treasury investors are not taking into consideration the long-term problems with the United States, including the evaporating middle class. This echoes similar statements the guru has made about the European Union. Debt-ridden nations like Greece, Portugal, Spain and Ireland do not bode well for the European Union and Gross likens the situation to a marriage where "one partner gets to have all the fun and the other works nine-to-five and came home too exhausted for whoopee."

For Gross, the disappointing situation within the developed world leads to opportunities in the "cleaner" dirty shirt countries of Canada, Australia, Mexico and Brazil. These nations are benefiting from more pristine balance sheets, yet offer bond investors higher yields. In addition, these commodity-centric economies are benefiting from the growing demand in emerging market nations. These commodity-production leaders will continue to benefit from the supply/demand dynamics of the emerging world. As commodity wealth increases, overall profit and employment spills over to various other sectors such as health care and consumer spending, boosting their economies even more. Other analysts at PIMCO have echoed Gross' comments saying that these sorts of nations will become the developed market leaders over the next five years. (For other investors to watch, see Guru Investing Advice For Today's Market.)

Betting on These Nations
For investors who wish to follow the guru's advice, the recent global sell-off offers an opportunity to pick up some of these assets on the cheap. Funds like the Guggenheim ABC High Dividend ETF (Nasdaq:ABCS), which tracks high dividend payers in Australia, Brazil and Canada, can be used as general proxy for Gross's ideas. However, there are other possible plays as well.

Gross expects non-dollar currencies that have strong trade ties with Asia to outperform. The WisdomTree Dreyfus Commodity Currency (NYSE:CCX) follows a basket of eight different commodity-based currencies that should continue to strengthen in the years ahead. Overall, the commodity basket has produced about a 10% return over the year. For investors looking for more of an income opportunity, the Aberdeen Asia-Pacific Income Fund (NYSE:FAX) bets heavily on Australian bonds and yields 5.6%.

Canada continues to emerge as a premier investment destination due to its growing commodity wealth and stable banking industry. Both the United States and China count Canada as one of their major trade partners with regards to natural resources. While iShares MSCI Canada Index (NYSE:EWC) continues to be a top pick, stocks like the Royal Bank of Canada (NYSE:RY), oil company EnCana (NYSE:ECA) and telecomm Rogers (NYSE:RCI) all offer investors strong growing dividends in excess of 3%. Similarly, the IQ Canada Small Cap ETF (Nasdaq:CNDA) allows investors to tap into a more resource based ETF. The fund includes more 70% of its holdings in commodity firms.

Finally, Mexico is often ignored by investors, but the nation is rich in farmland, silver, copper and oil. The iShares MSCI Mexico (NYSE:EWW) and Global X Mexico Small Cap ETF (Nasdaq:MEXS) allow investors to tap into this growing nation.

The Bottom Line
For retail investors, sometimes it pays to follow some professional advice. Recently, Bond King Bill Gross has continued to warn investors about the debt and political problems facing the developed world. To this end, he has suggested investors focus their attention to commodity-rich nations with strong balance sheets. The previous plays are great examples for adding that exposure. (For more on commodities, read Cashing In On A Commodities Boom.)

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