To celebrate the holidays, we here at the Fool are devoting extra virtual ink to all things consumer-focused in a special section called "The 12 Days of Christmas." Over the coming week, we'll have our "12 Days of Content" surrounding consumer-focused names that look set to profit or perish from the holiday cheer.
Overseas economies are expected to outpace the U.S. next year. According to Morgan Stanley, global economies should grow 4% on average next year while advanced G-10 countries will see barely 2% expansion. The developing world should be the main driver, with China exceeding 10% next year, India growing 8%, and both Russia and Brazil expected to expand by some 5% on average.
While that sounds hopeful for Chinese telecom provider China Mobile
It only takes a pinprick
In Russia you run the risk of the government seizing your investment, and China's growth has been over-aided by a massive $586 billion stimulus plan. That's causing anomalies in the marketplace, with numerous Chinese industries overheating. Steel, petroleum, chemicals, glass, and even office buildings and luxury malls are growing at a torrid rate.
These effects of China's stimulus program offer some very good reasons to be concerned about investing in the Asian nation.
A more satisfying meal
So where should an investor turn? Even if China's economy is expected to outperform America's next year, that doesn't mean investors can't find excellent opportunities in the good ol' U.S. of A.
So here are six stocks for 2010 that will be better than China and won't leave you hungry for more later on.
The lessons learned in the Great Recession will stick with consumers for some time. Whether recovery is delayed or comes next week, Wal-Mart Stores'
Department store chain Kohl's
Jos. A. Bank
Speaking of being all dressed up, men's suit seller Jos. A. Bank Clothiers
If business is going to grow next year, it's going to need supplies. More and more, that means they'll be buying them from the top office supply chain, Staples
Bed Bath & Beyond
I'm no housing bull, but it's hard to ignore the extraordinary lengths the government's going to keep the good times rolling. And a better housing market is going to lead to greater demand for furnishings, meaning Bed Bath & Beyond
If Bed Bath & Beyond is the most threadbare prediction in the group, then Hasbro
There's nothing wrong with adding some international spice to your portfolio, in fact I'd say it's essential to being well-diversified. But once you travel the world, settle right back here at home with these top investments.
Got other investment ideas that you think will be better than China in 2010? Share them with us in the comments box below!
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Bed Bath & Beyond, Hasbro, and Staples are Motley Fool Stock Advisor recommendations. Wal-Mart Stores is an Inside Value recommendation. The Fool owns shares of Hasbro. Try any of our Foolish newsletters today, free for 30 days.
Fool contributor Rich Duprey owns shares of Wal-Mart and Bed Bath & Beyond but does not have a financial position in any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.