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Thread: How many of you invest overseas- and where? What do you think about Asia's growth?

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    Senior Member Lillionaire's Avatar
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    Default How many of you invest overseas- and where? What do you think about Asia's growth?

    Just wondering what you guys have to say about this.

    Fidelity has some mutual funds with Chinese/ Emerging Asia/ Emerging Countries stocks. I'm tempted to take part in this because I see Asian countries growing.

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    God/dess J.D.'s Avatar
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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    Quote Originally Posted by Lillionaire View Post
    Just wondering what you guys have to say about this.

    Fidelity has some mutual funds with Chinese/ Emerging Asia/ Emerging Countries stocks. I'm tempted to take part in this because I see Asian countries growing.
    Coincidentally, I was looking at something like this: http://www.hsbcnet.com/treasury/stru...ps6.html#notes

    I guess the same concept, but with HSBC instead of Fidelity. I think the HSBC brand name holds more power.

    What country are you in?

    EDIT: This particular one is not offered anymore I believe, but there are some other products based on the same concept (using several different Asian markets)
    Quote Originally Posted by AznExtasy View Post
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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    This is the one I was thinking of: http://www.hsbc.ca/1/2/en/personal/i...r-smgic-bundle
    Quote Originally Posted by AznExtasy View Post
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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    I own BIDU stock but only because my BF has a ton of it. Its hard to invest overseas. Ive had better look with small stocks like Liberty Energy which is doing really well (LBYE) and I also own VCGH and RICK because they own clubs. Other than that Gold is good if you bought it when it was 400 an ounce but never buy paper gold buy coins or bullion.

    Energy is good as is defense and all that! I use etrade and its awesome!

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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    To the OP, I agree that compared to the US domestic economy there will be much more economic growth in China, Korea, Brazil, Vietnam etc. However, with investments, timing is important. Right now all of these emerging market investments have already been 'bid up' as US 'hot money' investors have already diverted investment funds into these countries ... to the point where exchange rates are moving and in some cases the countries have already imposed capital controls.

    Additionally, while these countries have experienced rapid growth, this does not automatically translate into increasing profits for the foreign companies thus increasing stock valuations. In fact, there have been some recent warnings by foreign companies that they are facing disappearing profit margins because A. the cost of their input commodities is increasing, B. their costs of labor are increasing as a result of in-country price inflation, yet the effective sale price of their goods ( net of converting the US dollars paid to them by WalMart or GM back into their home currency ) is falling.

    Disclosure - I do still own a Chinese gold miner stock and a Chinese beer stock.

    PS for American investors working on a limited budget, there are a slew of emerging market ETFs available

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    God/dess J.D.'s Avatar
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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    Quote Originally Posted by Melonie View Post
    To the OP, I agree that compared to the US domestic economy there will be much more economic growth in China, Korea, Brazil, Vietnam etc. However, with investments, timing is important. Right now all of these emerging market investments have already been 'bid up' as US 'hot money' investors have already diverted investment funds into these countries ... to the point where exchange rates are moving and in some cases the countries have already imposed capital controls.

    Additionally, while these countries have experienced rapid growth, this does not automatically translate into increasing profits for the foreign companies thus increasing stock valuations. In fact, there have been some recent warnings by foreign companies that they are facing disappearing profit margins because A. the cost of their input commodities is increasing, B. their costs of labor are increasing as a result of in-country price inflation, yet the effective sale price of their goods ( net of converting the US dollars paid to them by WalMart or GM back into their home currency ) is falling.

    Disclosure - I do still own a Chinese gold miner stock and a Chinese beer stock.

    PS for American investors working on a limited budget, there are a slew of emerging market ETFs available

    http://finance.yahoo.com/news/Broad-....html?x=0&.v=1
    This would apply mainly to Asian countries who import goods to Walmart/GM?
    Quote Originally Posted by AznExtasy View Post
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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    Quote Originally Posted by J.D. View Post
    This would apply mainly to Asian countries who import goods to Walmart/GM?
    Empty PM box please?

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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    done.
    Quote Originally Posted by AznExtasy View Post
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    Created by MyFitnessPal.com - Tools

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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    This would apply mainly to Asian countries who import goods to Walmart/GM?
    Actually, it applies to any foreign company that is paying world market prices for commodities / raw materials, that is paying labor in their home currency, but which is selling their product in another country where it is being paid for in a different currency. The WalMart and GM choice was just an example ... although foreign companies that entered into long term high volume supply contracts with companies such as WalMart and GM are REALLY getting the shaft right now due to a falling US dollar exchange rate ( i.e. when the US$ was higher their net profit margin might have been 15%, but now that the US$ has fallen 4-7-10% in exchange rate their profit margin has been reduced to much lower levels ).

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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    Once again, the conservative, sandwich-heavy portfolio pays off for the hungry investor
    - Dr John Zoidberg

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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    China's nervous about China !!!

    (snip)"China surprised the markets this weekend. Even though inflation is running at the highest rate in two years, China is focusing on curbing liquidity rather than trying to aggressively slow down the economy through interest rate hikes. The Chinese are hesitant to raise interest rates during the holiday season before year-end. The tightening move appears to be inevitable and will now be pushed off until 2011.

    An interest rate hike may have caused a serious correction in global markets as the consequences of QE2 and eurozone bailouts have caused an artificial increase flow of capital into the Chinese markets. Raising interest rates right now wouldn't be the most prudent economic decision as 2011 faces significant challenges with rapidly rising inflation in China, high unemployment, and declining home values.

    The Chinese decided to raise reserve requirements and margin rates before instituting interest rate hikes. Confucious said, “Study the past to divine the future.” In 1999, Alan Greenspan aggressively raised interest rates which caused the major decline in 2000. Instead, many economists in retrospect said Greenspan should have been more aggressive with raising lending and margin rates -- exactly what the Chinese are attempting to do now. This is a classic strategy that has been used in the past during speculative bubbles by central banks. They first raise reserve requirements before instituting interest rate hikes.

    I think the Chinese are very fearful of further slowdowns in Europe and the United States and runaway costs of basic commodities.

    They aren't ready yet to raise interest rates."(snip)

    from


    Lloyds is also of the opinion that China is on the verge of instituting domestic retail price controls as an attempted means of curbing 'domestic' inflation ... while at the same time attempting to avoid international currency exchange rate effects of raising interest rates i.e. a stronger Yuan versus a weaker US dollar = reduced exports / export profits.

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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    A lot of these stocks have been run up to the hilt on speculation. Plus, many Chinese companies have shady accounting practices so you never really know if the books are cooked. You could have great returns but you could also get whacked by 30 to 40% in one year. Usually, retail investors chase last year's gains and by the time they get in, it's at the top.

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    Default Re: How many of you invest overseas- and where? What do you think about Asia's growth

    Usually, retail investors chase last year's gains and by the time they get in, it's at the top
    There's a whole lot of historical truth in that statement.

    In fact, the 'gold foil hat' crowd has turned sour on China / Asia, and is sweetening towards Russia !



    (snip)Investing in Russia is clearly high-risk for the potential higher reward. However over the long run, as the above JRS chart illustrates, even complete wipe-outs on the scale of the 90%-plus losses that the banking sector has suffered, can and have resolved in virtually recovering the whole of the decline within two years. This is evidence of the underlying long-run bullish fundamentals at work that will eventually make the price actions, such as those above, invisible in terms of magnitude over the long run.

    I see no reason why the Russian stock market should not continue to outperform Western markets and major emerging markets such as China. Therefore Russia remains a great market for accumulation, especially if its mafia government embarks (temporarily) upon market-crushing military actions. And as with all volatile emerging markets, investors need to ensure that trailing stops are used to protect gains set at levels where the indices or funds (such as JRS) should not trade for the trend to remain in force; pay particular attention to JRS's stomach-churning cliff dive from 840 to 150 as Russian tanks rolled over Georgia.(snip)


    ^^^ the trick of course is picking the proper 'entry' point !

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