Experts Advise Steering Clear Of Asian Stocks
It has been nearly a year since Thailand devalued the baht, setting off worldwide market drops -- and what a ride it has been.</br></br>Most Asian portfolio managers would probably prefer to put the past 12 months well behind them, if they haven't quit their jobs already and decided to sail around the world instead. And pity the small investor, avidly checking up on the performance of his Asian mutual funds over breakfast only to find that day after day, Asian markets suffered staggering declines.</br></br>Since July 2, 1997 when Thailand let the baht float, Asian currencies and stock markets have crumbled, jolting emerging markets from Brazil to Russia. Even the European and U.S. stock markets have felt the heat from Asia's plunge, though both markets have been resilient.</br></br>So what's an investor to do now? Steer clear of Asia, lighten up on U.S. holdings, and load up on European stocks, say the experts.</br></br>"Big and liquid is beautiful," says Leila Heckman, managing director of global asset allocation at Salomon Smith Barney in New York.