Tuesday, 6 November 2012
Investing in Asia Offers Investment Alternatives
Although North American markets have shown their resilience and are demonstrating to the investment community that they can steadily improve their economic growth, some investors are still enamored with the long-term growth and prosperity; experienced in many Asian countries.
In many instances, investors are comforted by the fact that countries in Asia, like China and India, have repeatedly recorded strong economic growth; for the last half a decade. And, even if recent figures show a slight decline in development, they are still offering safer and more favorable investments, than the traditional opportunities available in the West.
The dependency that the world has upon cheap manufacturing and labor in the East, ensures that countries like China and India will remain a prosperous and a profitable investment, for some time into the future. Because of this, it would appear that the opportunity to invest in Asia and Asian markets, is an investing alternative that more investors are considering; when exiting North American investments.
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Investing strategies are generally all about the long-term growth of the investment. Investors want to put their money into industries or entities that are growing and projected to for a long period of time. This offers a measure of security and in effect, lowers the risk factor.
ReplyDeleteIt makes sense to look at the projected long-term demand for an investment product before investing. The longer the better. That way, more money can be made.
DeleteChina and India for the longest time have never been seen as strong international consumer markets despite having 2.4 billion people between them. However, they are both emerging as viable consumer markets now that their domestic wealth levels are increasing, generating more disposable incomes and creating incredible growth in consumer demand.
ReplyDeleteThe world’s dependance on China and India’s cheap labour has actually helped to grow their domestic economies, in turn creating more consumers generating increased demand for goods and services. As their incomes grow and their spending levels rise they contribute more to the global economy helping to drive it forward into the 21st century.
ReplyDeleteIt’s no surprise China’s and India’s economy are growing strong. They have to keep up with their growing populations now numbering around 2.4 billion people. Those are two huge markets that are creating more and more jobs and as a result there are more consumers spending even more money providing many good opportunities for business and investments.
ReplyDeleteDillen above makes a fantastic point about India and China as growing consumer markets. Especially China. China's economy is currently very imbalanced between capital investment (too much) and consumer spending (too little). The Chinese government fully understands that this is not sustainable over time, and they are gradually allowing the Yuan to become stronger and thereby improving the spending power of Chinese consumers. Those corporations that take advantage of this macro trend will do very well for themselves!
ReplyDeleteReal Assets