 |
|
|
Continuing my theme of looking at the diversified ETF's(Exchange Traded Funds) coupled with my belief that we are in the midst of a secular Bull Market for commodities(who am I to argue with Jim Rogers !!) then I wanted to expand on my recent post around China and Taiwan and take a look at Australia.Since 2001 Australia has benefited from the boom in commodities especially the Metals such as Gold,Silver and Copper mined by companies such as BHP Billiton (NYSE : BHP) and the agricultural commodities-which some would argue are only recently starting to catch up with the rest of the booming Natural Resource Mkts-(witness Corn and Wheat over the last few months.)
If you believe as I do that we have a good few years to go before the Natural Resource boom tops out then the Australian Mkt should do very well in the next 5 or so years.Even although the ASX 200 broke out from its all time high in the last few weeks I still believe that we will see it higher in the years to come.It climbed 19% in 2006 topping its 2005 performance of just over 17%. If that was not reason enough to look more closely at the opportunities in Australia the fact that the Australian Dollar has strengthened against the US dollar is another good reason for any American Investors or those who hold substantial amounts of their portfolio in dollars to consider the Australian Markets. In order to benefit from the boom "down under|" then we could look at individual companies such as BHP Billiton (NYSE: BHP ) or Rio Tinto (NYSE: RTP) up 220% and 150% respectively over the last five years, but I prefer the diversification of a fund-especially when companies can be as volatile as BHP and Rio Tinto.I would therefore take a close look at iShares MSCI Australia Index Fund (AMEX: EWA).This will give you a broad exposure to Australian companies and also will give you the benefits of some protection against the potential of a falling US dollar.This ETF is up 180% since 2001 and put in a performance of nearly 30% last year-that being said I think there is still some more upside particularly if you take a 3-5 year view. I currently hold some of the EWA but would be looking to add some more on any weakness or pullbacks.
As ever do your research , I would be placing a Stop loss of 20% on my average price and be looking to hold for 3+ years. Best Wishes Alan
|
The ultimate luxury good: time| Luxury consumers in the US and much of Western Europe are remarkably similar in that they both place far more emphasis on experiences rather than ownership, acc |  |
The elusive nature of 'cool'| The quest for cool is never-ending. New research provides insight into how consumers use products to signal membership in social groups, but swiftly abandon tho |  |
Bagels and the law of profit maximisation| Profit maximization is one of the most fundamental assumptions in economics, yet it is rarely testable because of data limitations and the complexity of most fi |  |
|
|
| |
Car Insurance can be really expensive if you dont take the time to negotiate the terms on your insurance deal. There are however, some tips you can follow to su |
|
| |
There are several things to consider when choosing a real estate agent and how you should select one can vary somewhat depending on if you wish to sell real est |
|
| |
Stock market regulator Sebi has approved all of its original proposals on participatory note (PN) issuances, with the only comfort being that all PN issuing sub |
|
| |
New Delhi: Telecom Engineering Centre, the technical wing of the DoT, is currently the centre of attention over its upcoming report on spectrum allocation and i |
|
|
|
| Stocks |
|
|
Believe me, good penny stocks do exist in life! Despite the bad reputation that shady stock promoters and boiler room operations have shadowed onto the world of ...
Do you enjoy spending hours, upon hours, doing research on potential stock choices? If you relate to the question, then let me address that now! There are ways ...
Almost 100 million people around the world today invest or trade in forex market, which is undoubtedly the largest financial market with an estimated daily aver ...
If you are going to trade currencies then you need a currency trading system and below we are going to give you the points you need to consider when building on ...
Making a currency trade is becoming a more popular way for investors to diversify their trading opportunities. Currency trading involves selling one currency an ...
|
|
|
|
|
