Sunday, October 23, 2011

Emerging markets could be the best investment zone---By Shan Saeed


I thought that I would use opportunity to discuss markets, investments and opportunities in a different light but it looks like that investors are moving to emerging markets at a very fast pace. Right now, the news out of Europe or the United States is downright depressing. I was talking to a few friends of mine who moved to emerging market areas. What I found interesting was that they moved for different reasons than I had thought. I thought they would have moved for better economic opportunity or more reasonable taxes or the like. Many cited the reason to just escape the atmosphere of where they had lived. Right now in the Western world, most of the mood is depressing.

Bank bailouts, huge deficits, high unemployment, sovereign default risk, depressed credit rating and austerity. Where as in emerging markets, the news is different: booming economies, sky scrapers going up, unemployment decreasing. and increase in purchasing power of people.

As opposed to Europe, a few South American countries in the past year have actually had their credit ratings increased in recent times. Part of the reason that people I knew are moving to these places is just to be a part of that boom. The positive aura breeds success.

Despite the problems in the West, there is still a lot of opportunity and wealth in these countries. However, my friends thought that all of the recession, economic downturns, etc., would affect them regardless of their success.

However, to make such moves takes a lot of courage and foresight. Most people will remain in the West because they don’t know anything else. Few will do what famed investor Jim Rogers and Marc Faber have done and move from the United States or Europe to Asia [ Singapore & Thailand] despite the opportunities there. John Templeton moved from the United States to the Bahamas in the 1960s, where investing got even better after his strategic move.
However, making an investment like this in your life is something that investors should consider.

Moving to such a nation as Malaysia, Singapore,Indonesia, China, Vietnam, Peru. Etc., where things are booming and opportunities abound may be just what many people need to get out of their rut. On top of everything else, real estate is often much cheaper in these nations as is the cost of living. It may seem outlandish and crazy, but it might be the best investment investors can ever make.

Disclaimer: This is just a research piece and not an investment advice. All financial transactions carry a RISK

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