Tuesday, May 21, 2013
Over the course of several years and having traveled to China, Vietnam, Malaysia, Thailand, Singapore and Indonesia, I think I'm now comfortable at investing in a mutual fund or ETF with a regional focus on this part of the world. The cities of these countries are buzzing with activity and you can just feel the momentum going forward. Many have written about the Asian century and the impressive GDP growth in this region, including the Philippines. However, as an investor, I seek to fully understand what I'm investing in and it is only by seeing for yourself what is happening on the ground and talking to its people would you get an understanding of its economic growth. I will not invest in one country's stock market index because my knowledge of one specific country is sorely deficient. Instead, I would want to put money in an asian equity fund with exposure to the all of the countries mentioned above. I was looking forward for the PSE to join the ASEAN trading link but come to think of it, I really would not be comfortable in investing in a particular Thai or Singaporean company since I do not know them that well. A good compromise would thus be to invest in a fund that invests broadly in the equities of these exciting countries. The timing may be a bit off since stock prices are expensive but this is irrelevant since I strive for an equal asset allocation to stocks, bonds, gold, cash and real estate. Time to research and read fund prospectuses. Happy investing!
Posted by Gabriel at 10:41 PM