The first half of 2011 was all about high performance from the U.S. and developed economies, MSN Money columnist Jim Jubak says.
For the rest of the year, he says, investors should look to emerging economies, and his top five stock picks for the next six months reflect that.
Jubak explains his picks and answers some questions from viewers in the following video.
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- Gol Linhas (GOL): This airline should fly high on the rise of the Brazilian middle class, as well as upcoming soccer and Olympics events in the country.
- Freeport McMoRan (FCX): For a commodity play, it's hard to find better than the largest publicly traded copper miner in the world.
- Johnson Controls (JCI): This is a U.S. company with good exposure to China, since it makes auto interiors for manufacturers there. The auto industry was beaten down this year, but Johnson Controls is a good way to capture the chance it will ramp back up.
- Banco Bilbao Vizcaya (BBVA): Again, the strategy here is to jump in as the stock bounces back. This bank is making a big play for more share of the Spanish market.
When asked about his take on General Motors (GM)
and Ford (F)
, Jubak said both automakers are on the upswing, with GM specifically one of the best-positioned to sell more cars in China. But a better way to profit from the recovery in the auto industry is at the supply level, with stocks such as Johnson Controls, he added.
would be on Jubak's list for all of 2011, but he said the stock has already appreciated in the first half of the year. It may continue to appreciate through the end of 2011, but a better strategy would be to look at suppliers, such as Precision Castparts (PCP)