A recent article in
recommends three mutual funds.
Two are emerging market funds focused on international
stocks. Surprised? You shouldn't be.
Emerging market funds offer exposure to the countries that are
growing the most. Emerging markets are even growing during the
David Snowball is the editor of of
. He is also a professor at Augustana College. In the
article, he recommends the SeaFarer International
Growth and Income Fund (
). This fund buys stocks for long term capital appreciation and
current dividend income.
Snowball says he is voting with his feet. He has committed to
invest in SFGIX "in the next couple of weeks." His reason is
Andrew Foster, who "performed brilliantly at Matthews Asian
Growth & Income (
), which was the least volatile (hence most profitable) Asian
fund for years."
Foster can create a similar portfolio with Seafarer. According
to Snowball, "This strategy makes sense, and Mr. Foster has
proven able to consistently execute it."
Seafarer focuses on dividend paying stocks. Emerging market
funds that have dividend paying stocks offer several advantages
over other stocks. The dividend income provides as much as 40% of
the historic total return of a stock. Dividend paying stocks are
also less likely to be fraudulent.
Emerging market funds offer the best of the international
community of investments. Europe is in a recession and will not
recover soon. Japan has been in "The Lost Decade" for well over
ten years. It is easy to imagine Europe or the United States
joining Japan. After all, stock market returns have been flat in
the United States for well over a decade now.
Professor Snowball has a good recommendation and the right
idea. Emerging market funds like SeaFarer International Growth
and Income Fund offer the best upside in the years to