The day was January 6, 1999. President Bill Clinton had just been impeached by the House of Representatives, John Elway and the Denver Broncos were cruising through the AFC playoffs en route to their second consecutive Super Bowl victory, and Apple's (AAPL) then interim CEO Steve Jobs was wowing MacWorld with iMacs that came in five colors. It was also the first time the S&P 500 crossed and closed above 1,25o.
Investors were not only on the cusp of the tech bubble (and burst) but were embarking on what would ultimately become a lost decade for stocks. Lost, that is, unless you had the foresight to buy and hold in the emerging markets (EEM). If so, you'd be up somewhere in the neighborhood of 350 percent today, instead of starting all over again from scratch.
And it is for this very reason that Cabot Money Management's President & CIO Rob Lutts has hitched his wagon to the developing world once again. It's one of the three bull markets that he says is still under way, and investors should gain exposure to (if you haven't already).
"Wealth and power are moving from West to East," Lutts says, adding that this is one of the rare times that you can get better growth rates and better valuations from emerging markets. "Investors need exposure there [China, Brazil, India]," Lutts says, and the recent pullback offers an opportunity to get on board. Emerging markets "belong in everybody's portfolio."Read More »from 3 Bull Markets to Invest in Now