 EASTERN EUROPE
Cheap but Choppy
In Russia, everything depends on the price of oil. If prices go up, it will be a banner year. If they go down — which seems at least as likely — Russia's in trouble again. Poland has brought inflation under control, but at the price of dampening domestic demand, the real driver of that economy. All told, you can expect the East to join in the European slowdown. But growth will still be better than in the developed economies, and as with Latin America, stock prices are cheap after a brutal bear market in 2000. The trouble is, shares here can falter even when the economy looks good. This complex, volatile market is best left to the professional fund managers, so no stock picks.
HSBC
Here's a financial play with fairly modest exposure to the U.S. The giant bank (which trades on the London, Hong Kong and New York exchanges) does most of its business in Europe and Asia. In Europe, HSBC will be poised to take advantage of falling interest rates, and it's also a big consolidator in Asia.
Buhrmann
Deutsche's Levy likes this Netherlands office-supply wholesaler because it combines the defensive with the trendy. The company has operations in the U.S., but despite a slowdown, it will be tough for companies to cut back on essentials like paper and printer toner. Growth will come as more corporations decide to outsource quotidian tasks like keeping the supply closet full.
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The Year Ahead
Politics
Business
Investing
- United States
- Latin America
- Europe
- Eastern Europe
- Japan
- Asia Pacific
Trends
Viewpoint: Pass the Buck
Technology
Arts & Media
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