Overseas Investing
Archived Posts from this Category
Investing During The Onset Of Recessions
Posted by Bryan on 24 Jul 2008 | Tagged as: Investing Tips, Investment Ideas, Investment Protection, Mutual Funds, Overseas Investing, Trading
When the economy is booming it is easy to make profits as just about everything goes up in values. However, during the onset of recessions and depressions investing in any old thing will not work. In fact you should invest as if there is a recession about to happen all the time in my opinion.
James writes an article about recession proof investing, but I would have a different approach. I would always invest in mutual funds that make money whether the markets are going up, down or sideways. They are funds that deal in futures, currencies or other derivatives. Trading can be very lucrative during the onset of the recession, as the market can fall very quickly allowing for many good “short” profits to be made. If you are not confident of trading though, then having some of your portfolio in mutual funds that invest in derivatives is the way to go. I invest in these types of funds via overseas investments.
Recession Proof Investing - Where to Make Money in a Recession
With most Western economies facing economic downturns, if not all out recession it is becoming increasingly hard for investors to find good investments that provide solid returns.
The recent global credit crisis has made it much more expensive for companies to borrow money to fund their activities. Virtually every listed company uses some for of debt to finance part of their trading activities meaning that there are virtually no companies out there that have been unaffected by this crisis. This increased cost of borrowing has forced profits much lower and for some highly leveraged companies it has spelled the end, just as it did for Bear Stearns. All of this has meant that stock prices have been falling and with the economic climate set to get worse traditional equity stocks look set to lose investors money.
Diversification is Key
Traditionally in recessions investors were well advised to move funds into what are known as ’staple sectors’ such as food industries, the theory being we all need to eat and buy their goods. However the impact of increase borrowing costs as well as rising commodities prices has meant that food prices are getting more expensive and hitting the bottom lines of food industry companies.
In order to better recession proof your investments it is essential to learn to not be afraid of investing in new markets or industries. May investors make the mistake of believing they ca only succeed by sticking to investing in their specialized niche. This works when markets are rising however when they are falling it can be compared to trying to pick good apples out of a rotting basket. Instead look for a new fresh basket in which to invest.
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Learn more about exactly how to recession proof your investing or learn to trade commodities. Article Source: http://EzineArticles.com/?expert=James_McKerr |
Investing In Developing Countries
Posted by Bryan on 07 Jul 2008 | Tagged as: Investing Information, Investing Tips, Investment Ideas, Mutual Funds, Overseas Investing
Investments in developing countries, such as China, India and Russia have been very profitable over the decade. Rodrigo wrote the article below and he seems to think that this will still be the case for the 21st century. I definitely have investments in China, Russia and India through Landau Securities.
The Countries of the Future, Or Where to Invest and Make Money!
The United States has experienced significant growth rates in the last 150 years. Over this period, America has gone from a small farming economy to the greatest power in the globe, with significant gains for its citizens in quality of life. Today, the average American family has too many cars, TVs, computers, and a huge amount of debt!!! How much more can they still continue to buy? To whom are companies selling their products?
Business owners have realized this problem years ago, and therefore “globalization” was created. Well, not exactly created, but 20 years ago the American government, supported by its largest corporations, started to push the concept of “open markets” into developing countries. The idea, as said, was that poor countries should be selling metals, oil and food to industrial countries, who would process these materials and, in return, sell back industrial products to the poor countries, which required significant capital and skilled labor (at much, much higher prices by the way). This way, American companies could benefit from the enormous consumer markets available in developing countries. Oh, almost forgot: many of the products that poor countries could produce, like food, would not be able to be sold in the United States, not to displease some of the voters (called farmers) of the government.
As things progressed, American companies realized that if the U.S. would let commodities come in, why not take advantage also of much cheaper labor prices in these countries and relocate the manufacturing operations of some of the factories they did not want, like coal and steel? This way these companies could make much more money selling to the same crowed!!! Later on, as workers were also trained on other types of jobs, other industries also relocated to countries like China, Malaysia, Indonesia, Vietnam and Korea.
But the U.S. still had services businesses to generate jobs … until the internet made it much easier to provide services online and countries like India and even Ireland took part of that cake too.
But what do countries like Brazil, Russia, India and China have in common and why is so many people talking about them? And what does that has to do with the story above?
These countries have a large population, underserved, eager to buy, eager to increase their quality of life. And with more jobs relocating from industrial to developing countries, they now have the means to buy more stuff.
The countries that will be able to sustain high and consistent growth rates over the next decades will be these same countries with big domestic consumer markets. China growing in manufacturing, India in services, and Russia and Brazil producing the resources that the new world needs to grow. This is the new order of the 21st century. And where there is a market, there are companies willing to serve it.
If you want to invest in companies that will sell more, make more money, grow faster, you have to invest in companies that are selling to these markets, to these consumers.
Brazil is a democracy, de-regulated market, a peaceful country, no meaningful natural disasters, no ethnic or religious tensions, and rich in natural resources. It is a country that experienced significant progress in the last decade, and yet has a lot to come. If you pick the right industries, the right companies and the right investments, your returns can be very, very significant.
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Rodrigo Lowndes is a partner in private equity firm Emerging Capital. He was previously a managing director and president of Morgan Stanley & Co. in Brazil. He currently publishes a site with investment ideas on Brazil, http://www.investing-in-brazil.com/ Article Source: http://EzineArticles.com/?expert=Rodrigo_Lowndes |
Investing Overseas-Trend or Fad?
Posted by Bryan on 05 Nov 2007 | Tagged as: Investing Tips, Overseas Investing
As most of you are probably aware, I am a big fan of investing overseas and I have been doing so through Landau Securities for a number of years. This article written by Jeffery shares some of the same thoughts that I do, so I felt that I would share it with you.
The returns on international mutual funds have far out-paced those earned by U.S. funds for the last several years. As a result, there has been a deluge of money flooding into these funds. Is this the 1999 Tech Bubble all over again? Read on to find out.
Investing in technology stocks was the big thing in the late 90’s. Internet startups that didn’t have a dollar in sales were raising billions of dollars in an IPO. The value placed on companies was outrageous. Anyone remember Priceline.com? In 1999 the stock hit a high of over $300. A few years later it was trading at $5 a share. Will the same thing happen with International stocks?
The short answer is no. Investments in foreign companies haven’t reached the frenzied pace seen in the Tech Bubble. Moreover, there is a reason overseas markets are performing so well. It’s essential you understand the underlying trend so you can properly allocate the place international investments have in your portfolio.
My wife and I recently returned from a short trip to Cambodia. My experience there has given me a greater appreciation for and an understanding of the development under way in Asia.
Cambodia is a very poor country. The average annual income per person is $2,000. And they’re still recovering from atrocities of the Khmer Rouge in the late 1970’s, when 2 million people died. Now, 40% of the population is under the age of 15.
The human spirit, though, is the same everywhere. Ambition and desire are not American attributes; they are basic to human nature. And that’s what I saw in Cambodia. Many are working to improve their own lives and those of their families. That means commerce.
Cambodian wages are very low so foreign money is flooding into the country. Garment factories are being built and employ thousands. That’s causing land prices to double and triple in value. Family rice patties are now sold for tens of thousands of dollars. Their sale completely changes the lives of that family.
Invariably, they buy a car and home. They buy furnishings. That money trickles through the economy, raising the standard of living each step of the way. Multiply that by thousands and thousands and you can see the impact it has.
The capital of Cambodia is Phnom Penh. Just 5 years ago many of the streets there weren’t even paved. Now they are. New roads are being built and hydro-electric dams are being planned.
Cambodia is just one example of what is happening in countries all across Asia. In China and India alone there are over 2 billion people. Most of them have lived in poverty all of their lives. But that is changing. Standards of living are increasing.
Will this rate of growth continue forever? No. But I believe it will last a decade or more. The rate of growth isn’t going to be constant. There will be cycles just like there are in any economy. There’s no denying the overall trend, though.
What does this mean for your portfolio? I believe that many investors should have a substantial part of their portfolio invested outside the United States. Our economy has been growing around 3% a year. China and India’s economies are growing around 10% a year.
Traditionally, experts have suggested that 10-15% of your portfolio be invested internationally. Now some suggest 25%. I believe it should be higher than that.
The problem, though, is that you can’t just throw money into an overseas mutual fund and forget about it. These markets can be very volatile. China’s market dropped almost 10% in a single day earlier this year. It’s vital that this money be invested wisely, that it be closely monitored and that strategies are in place to reduce the overall risk.
That’s what I’ve been doing in my clients’ accounts the last year or so. Some of the stocks that have performed very well are Bayer (BAY), Siemens (SI) and Bunge (BG). There are investments in Canada, Europe, Russia, Israel, Brazil, Australia and all across Asia.
Using targeted companies to profit from such trends is better than just buying an index. When balanced with other income-oriented investments and loss-limiting proprietary strategies, the result is a portfolio that is designed to have greater growth potential than one focused only in the United States.
It’s important that you have money invested outside the United States. The growth in emerging markets like China and India isn’t a fad, but a trend that could last for decades.
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Nationally-syndicated financial columnist and Certified Financial Planner® Jeffrey Voudrie provides personal, in-depth money management services and advice to select private clients throughout the USA. He’ll answer your financial question – FREE at http://www.guardingyourwealth.com/ Article Source: http://EzineArticles.com/?expert=Jeffery_Voudrie |
Investing In Thailand
Posted by Bryan on 11 Oct 2007 | Tagged as: Overseas Investing, Real Estate
Most people only invest in their own country. This may be a safer option in some cases, but many of the potential big gains can be made by investing offshore. Just look at the massive increases, China, India and Russia has had over the past 5 years or so. I personally believe that investing offshore should be part of your portfolio strategy and I do so via Landau Securities. The article written by Stephen shows why Thailand may be a good place to invest in.
Thailand - An Exotic And Investment Goldmine
Why Invest in Thailand?
Mysterious Thailand is Asia’s top tourist destination, offering a top class tourist industry at very affordable prices, a magnet for visitors, emigrators and property investors alike. In many major locations in Thailand, the local economy relies heavily on tourism and increased property investment in these locations is now the perfect news for domestic economic growth and good capital returns.
Natural and Cultural Factors
1. Once an exotic and expensive long haul destination, Thailand is now also a sophisticated tourist destination with a universal appeal, with holidays very competitively priced.
2. For thousands of people who have worked in Asia for many years, Thailand is a very attractive retirement destination, in which the living environment will feel familiar.
3. Retirement visas are available for foreigners over 50 years of age.
4. Thailand has good schools, an efficient health care system and it is seen as a friendly country in which to live or visit.
5. Thailand offers beautiful mountains, dense forests and stunning beaches, a tropical climate and cities teeming with culture and colour which draw visitors back each year.
6. Warm weather for winter holidaymakers. Peak season is between November and February.
Economic Factors
1. The relatively undiscovered nature of Thailand means that property prices here remain far below those in the more established European markets, although they are growing quickly and strongly (around 10-15% a year).
2. Thailand is the largest growth market in Asia. Some businesses choose Thailand as a regional base from which to keep their employees working all around Asia.
3. Thailand has recently attracted significant foreign investment. It has become one of the Asian economic leaders and is one of the fastest-growing economies in the region.
4. The completion of the Suvarnabhumi-Bangkok International Airport (SBIA) is expected to spur growth in commercial property markets in eastern Bangkok as well as make Thailand even more accessible by air. Thailand is one of the cheapest places to fly to in Asia.
5. The country has strong business links with China and has an excellent infrastructure as well as world-class facilities in many resort towns.
6. Property is much cheaper in Thailand than elsewhere and an increase in overseas interest in property purchase has helped to create an economic recovery in Thailand. Property investors who bought post 1999 have witnessed impressive capital growth, particularly in major cities.
7. Rental potential is great, due to increased government spending luring growing numbers of tourists.
8. No capital gains tax for private investors, and low ongoing taxes.
9. Today foreigners are regarded by the government as a big investment opportunity in Thailand.
Summary
Thailand remains less exploited in the property investment sector than many other areas and for this reason prices are far below those in more established European markets. However in many areas, prices are moving upwards at a rate of approximately 10-15% per annum.
There are undoubtedly some very attractive investment options to be found in certain locations of Thailand and, according to world experts, Thailand’s economy is undergoing a steady growth spurt. While improvements to Thai property investment provisions continue, a symbiosis with the tourist economy and the real estate economy, will allow mutual growth at unprecedented levels.
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Bought to you by Overseas Property Expert: Stephen Fielding, Business Development Manager for The Overseas Property Webshow. Article Source: http://EzineArticles.com/?expert=Stephen_Fielding |
