A solid piece of investment advice is to capitalize on economic growth,especially if you’re seeking long term investment success. As nations outside of the United States continue to grow and develop,multiple opportunities are emerging in other countries’ investment markets,as reported by Pasadena Star News.
Global economic growth is a fairly recent development,but is a strong investment opportunity. Emerging markets in nations that are relatively new to strong economic development might become among the world’s biggest economies and markets in the next 40 years. For example,China recently beat out Japan for the second largest economy in the world,and might take the top spot from the United States in the next few decades. Nations like Mexico,India,Brazil,Russia,Indonesia,and Turkey are projected to be the world’s top economies in forty years.
Having a global presence in your portfolio also gives you the benefit of diversification. Markets in other countries often don’t have highs and lows at the same time as the United States market,which can let some of your investments gain or hold ground even if others won’t. In the five years ending on September 20th,2010,the U.S. stock market had an average return of 0.64 percent,whereas stocks of developed overseas markets returned almost two percent per year. Emerging market stocks,such as Mexico,had annual returns of 12.7 percent - that’s almost twenty times the return from the United States stock market!
In short,if you’d like to receive strong growth on your investments,larger returns than in the U.S. market,and diversify your portfolio,look into investing abroad. Mexico is closer than many of the other nations that are currently having strong economic growth,and has experienced growth this year as well as having strong projected growth for 2011. Investing in Mexico would certainly be a solid choice for those looking to get started with investing in other countries’ markets.