Emerging Middle Class (bonds, mutual fund, investment, stocks)

[LordSquidworth]

Discuss!

Found the article in a schwab magazine in my house somewhere.


The Case for International Investing | Charles Schwab On Investing Magazine

[bale002]

Interesting that North America is projected to have among the slowest growth rates, and that is exactly what current real interest rates, at least in the US, are telling us.

It distorts the picture, however, to include all of Russia with Europe. If anything, the EU, on the one hand, and Russia, on the other, should be in a classes by themselves: though either way it seems that the growth projection for both is also still relatively anemic, it is for very different reasons.

The fact that Australia is included in Asia Pacific may also be somewhat distortive.

Also worth mentioning is that, economically, Mexico may be more integrated with North America than with Central and especially South America, and most of Central America and the Caribbean have free trade agreements with the US, but also Chile, Colombia, and Peru.

Hence it would be interesting to have an interactive chart to play around with different groupings.

Besides that nitpicking, the real question is what does the average investor in the US do to participate in Asia Pacific growth?

1) expand your current business to the region/move there and open a business;
2) seek private equity deals through partnerships and similar;
3) buy in first person local real estate;
4) pick your own stocks and bonds based in those countries' exchanges;
5) buy stocks of Asia Pacific-based companies listed on US exchanges;
6) buy stocks of US companies with a high percentage of revenues/earnings in Asia Pacific;
7) do some combination of 4), 5) and 6) through US-based investment funds;
8) something else.

Okay, what mutual fund is Schwab pushing?