Top picks 2013: New Markets, Select Industrials

These favorite funds look to emerging-market income and global infrastructure.

By TheStockAdvisors Dec 27, 2012 11:58AM
Comstock Images JupiterimagesBy Jack Bowers, Fidelity Monitor & Insight

Our conservative pick for 2013 is Fidelity New Markets Income (FNMIX), and emerging market debt fund that invests mainly in dollar-donominated bonds issued by emerging country governments.

Meanwhile, our aggressive selection for the coming year is Fidelity Select Industrials (FCYIX), a global infrastructure play.

Back in the late 90s Fidelity New Markets Income was a very risky bet, but today it is mostly investment grade and risk is on par with a conservative high-yield bond fund.

We like it because inflationary pressures in emerging countries have abated, and unlike developed countries there are no chronic debt problems stemming from burdensome entitlement benefits.

Long-time manager John Carlson is one of the best in the industry when it comes to analyzing this segment, and his track record speaks for itself.

Fidelity Select Industrials is our pick for more aggressive investors. Much of the world is playing catch-up when it comes to transportation, power generation, clean water and medical technology.

And the shale boom is boosting domestic demand for industrial supplies and transportation services while at the same time reducing the cost of providing them. Low borrowing costs and better credit availability are helping too, especially where high-ticket capital goods are involved.

Best of all, low-cost foreign competition is not a problem for these firms -- emerging country copy-cats are neither willing nor able to compete because the markets are too specialized and the quality and reliability standards are too high.

More from TheStockAdvisors.com
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

126
126 rated 1
286
286 rated 2
474
474 rated 3
680
680 rated 4
626
626 rated 5
609
609 rated 6
620
620 rated 7
462
462 rated 8
304
304 rated 9
132
132 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
BIDUBAIDU Inc10
BXTHE BLACKSTONE GROUP L.P10
CELGCELGENE CORP10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.