As the world economy begins its journey back, there are emerging market opportunities that were present before the collapse and still remain. The consumer is perhaps the largest opportunity in this regard. As one considers this investing rout, looking at the United States model may well be advised as one considers options and other developing countries follow suit. Consumer spending has largely driven the US model in the past and is likely to drive international opportunity going forward, albeit in a differing form.
Consider leading investment advisors statistics that state, over the past 10 years, 80% of the best investments were outside of the US. Depending upon which segment one is interested in investing in, this indicates that keeping investments confined to the US is less than profitable. The question however remains, where to invest in? Answering the question is questionable in of itself but can easily be answered what an investor is interested in.
Latin America is a fairly popular emerging BRIC region where natural resources and a rising consumer are highly prized. China means people and a high savings rate that need to be spent (although, like the US, health, legal and other considerations are an issue.) Canada, although oddly thought of as a US off-shoot, is actually a separate country and a differing economy to be taken advantage of.
There are issues as an investor goes about looking at foreign investing but they can be addressed if an astute investor pays attention going into the investment. Commission on trading can be higher and currency exchange rates, especially in today’s sketchy dollar situation, are considerations. Not addressing foreign opportunities, however, may also be sketchy if a balanced portfolio is the desire. Today’s investment environment dictates looking at the world as an investment; the question is where to invest and when to take a swing at the right ball.