The FTSE is trading lower than we’ve seen for nearly three years.

A raft of bad corporate data in the US sent UK shares piggybacking further down in Thursday afternoon’s session. But, let us not forget that, the market was already deteriorating before General Motors posted disappointing earnings across the pond.

As you’ll recall, the downturn was telegraphed by market traders weeks ago.

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The burgeoning second quarter bull run which we saw in May was a phony. Stocks were pushing higher, but hardly anyone was trading. As one market maker put it at the time, "I thought it was Christmas day... volumes are just so low."

If my past experience as a technical trader has taught me anything, it’s that a price trending without volume never lasts. And it didn’t.

So what does this mean for your average investor’s portfolio? Thankfully, not a great deal.

Allow me to explain...

At Fleet Street we pick stocks. The FTSE 100 is not a stock.

Buying the whole FTSE 100 index would expose us to some potentially dangerous sectors, like all those bad banks. Hence, it is smarter to pick stocks than to take on these inevitable laggards in a large cap index fund.

Which begs the question of what to buy?

The stocks you should be looking at right now

Big multinationals.

This is not your grandfather’s stock exchange, and while there is a tendency for investors to gravitate towards stories closer to home the big picture is pointing in a different direction.

Real growth in trade year on year is coming from emerging markets, and luckily the FTSE 100 allows us to capitalise on this opportunity.

Brazil, Russia, China and India... our stock market is a window on the world and this is where we will be focusing its energies to help you and your money sidestep the troubled UK economy.

Fleet Street Letter, our sister publication, has been researching companies that have customer bases in Asia, Eastern Europe and Latin America.

By identifying this trend early, these companies are on the front line of this new ‘economic miracle.’ The growth potential for these firms is massive.

In a depressing age where most companies have to cut costs, re-strategise and sell assets, finding stocks that are growing outright is no mean feat. But it is what we are here for.

Stay tuned for a special report that will give UK investors the smartest way to play the boom in emerging markets.

Watch this space.

Theo Casey

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