Australia and Beyond
Barron's had several references, in different articles, this weekend to investing in Australia, Canada and New Zealand. There were a couple of quotes here and there from Kathleen Gaffney from Loomis Sayles and this article in the mutual fund section.
The primary focus of the feature article was that China is creating a tailwind for Australia because China imports a lot of resources from Australia. I would add that there is visibility for other countries to need more resources over the course of the new decade similar to China even if in smaller magnitude.
The bigger idea behind the comments about Australia and Canada (New Zealand is in a different situation being more of an agricultural economy as opposed to mining stuff out of the ground) is the often referred to ascending middle class. The quality of life has been improving in quite a few countries for a while now and this will spread to many other countries in the coming years. That this will happen is indisputable although the vast improvements that will occur should not be thought of in US terms. For people who don't have it now, getting access to solid housing, running water, reliable electricity and protein for a couple of meals a day is a dramatic improvement that most of us probably could not relate to.
The investment possibilities that stem from this are vast. In no particular order we've mentioned the resource suppliers, companies that are part of the food solution, utilities providers, builders of the infrastructure, services like phone (probably wireless) and TV (maybe not 500 channels like we might get), EG shares thinks mall operators/real estate companies can benefit, aspirational items like Nike shoes (we own this stock for clients), day to day products like toothpaste and shampoo and there are others. All this can happen, IMO without US banks, Japanese companies or many companies from big Western Europe.
In the past I have mentioned Kazakhstan as having the potential to be an interesting investment destination for the vast resources in the ground while noting some serious corruption obstacles. If it can ever happen for Kazakhstan it will be because of the above. It could also be the catalyst for Mongolia to become an important and more easily accessible investment destination one day as wellBasketball Shoes 2015,Kobe 9,KD 7,Lebron 12 Shoes,Air Jordan. Both countries have a couple of individual stock choices with companies listed on other exchanges (Hong Kong, London and Toronto).
The path of how it could happen is very easy to see. The world needs more resources, these countries have them, they either address and solve their obstacles or they don'tCheap Kobe 9 Shoes. If they do then the quality of life for (almost) everyone there will improve lifting the fortunes of the nation Nike Kobe 9 Elite Officially Unveiled. The work now, for people willing to take the time, is a little bit of understanding of the current situation and then a fair bit of ongoing monitoring.
If you agree with me that Australia, Chile and Norway are useful investment destinations then maybe you will agree that there will be other countries that in time will serve the same role in a diversified portfolio. You will help yourself by isolating these countries early on and figuring out what they can do for you. Some of this can be done with ETFs but not all of itNike Lebron 12 New Released.
