Tuesday, September 11, 2012

International Investing - Economic Growth


There are many countries in the world that are experiencing immense growth that go beyond even the United States and can offer great opportunities for those who are seeking international investment opportunities. China is now second in terms of market capitalization and is followed closely by the likes of Great Britain, France, Japan, India, Brazil and Russia. The tremendous growth in the economies of these countries over the last ten years is shown in the capitalization of these countries offering incredible investment opportunity.

Economic growth in countries such as Russia, Brazil, India and China has outpaced the growth of other developed countries. Between the years 2004 - 2008, the average real GDP by 3.5% in Brazil, Russia 5%, 8.9% and a huge 10.8% in India and China, respectively, compared to U.S. economic growth that has just had a mere 1.8% in the same period of time. Although the international investment in these emerging markets may entail risks much more than investing in the U.S., the potential return you may get out of these makes the prospect of international investment very appealing.

From Japan, Korea and South Vietnam embraced market capitalization of twenty years ago, has spread like wild fire with China come later. Moving million in urban cities in a few days it was virtually impossible, but China has shown how this can be done as it continues to attract millions of people every year in these so-called urban capitalist enclaves that actually has made China what it is today.

One of the greatest strengths of international investment is that you can buy shares some of the organizations largest and fastest growing in the world and reap the rewards of these investments with the larger time frame, if the investor is willing to take risks that are part and parcel of going international.

Investing can be done in several ways. One of the ways of international investment is through international mutual funds, including several blue chip companies. You can also look to indexed mutual funds that replicate the returns are being achieved through a market index as the index MSCIEAFE International SandP 500 in the United States. There are also funds that trade offer a good enough substitute for mutual funds and trade on the stock exchange like any other conventional broth, but not a, but a basket of stocks in different companies....

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