What’s your opinion on long term investments. Where is the most sensible region to invest?
Asia?
North America?
Europe?
Emerging Markets?
Individual Countries?
I’m thinking Asia as much of the capital invested in Europue and the US is moving to more cost effective producers in Asia. Also, the money seems to want to be near China.
On that note. Investing in China from Taiwan. Can it be done by a private investor?
Ski
Investing in China from Taiwan. Not a good idea. Maybe long term but it is a gamble. A lot of Taiwanese businesses did it a few years ago and it was one of the major reasons for the negative change in value of the NT from an earners viewpoint.
diversification is the key to success
Long term.
S&P 500 ETF’s
11% per year over the long term.
Easy
You are your best investment. Anything else is too unstable and dependent on the whimsical views of others.
… ETF’s are good as the second one after a good education, and a continuing one, off course.
The primary advantage of exchange traded funds (ETFs) over mutual funds if you are a US citizen or resident is that you don’t have to pay capital gains taxes until you actually sell. With a mutual fund you typically pay a bit in capital gains each year to cover gains of shares sold to cover redemptions. While in the long run it probably balances out, ETFs make your taxes more predictable. If you are not a US citizen or resident, your tax system may be different, and an ETF may not be any better than a mutual fund. (For example if you are an ROC citizen investing abroad, you probably don’t have any tax liability for either option.) Mutual funds have the advantage that if you already invest in a fund you can invest more without any fees, while ETFs you have to pay a fee each time you buy, just like buying stock. If you use dollar cost averaging as an investment strategy, mutual funds can be better for this. Look on Yahoo or other sources to find out how much you pay in fees for any fund you choose. A lot of S&P 500 funds charge 1-2% in management fees even though they really don’t have to do anything. Other funds like the Vanguard S&P 500 charge much lower 0.25-0.50% management fees depending on the fund class.
That’s all fine and dandy. Apparently, HSBC is now selling ETF’s now. I don’t now any of the details yet. IF they are selling them (in English), I’m sure there are others doing it too. If oyu know, please post the service charges for comparison.
secondly, assuming you would take the risk. China vs India as an investment area. Say US$5000 in mutual funds.
adavantages to india: growing economy, democracy, western style leagal system
Advantages to china: huge economy, fast growth, global recognition
Any opinions
Find out the ticker symbol and go to Yahoo and pull up the info on it. For mutual funds they always have details on the management costs, not sure about ETFs.
[quote]China vs India as an investment area. Say US$5000 in mutual funds.
adavantages to India: growing economy, democracy, western style leagal system[/quote]
It is more difficult to invest in India because there’s a lot of regulation on foreign investment, and there’s only a few large companies with ADRs to invest in outside the country. China’s investment climate is a good bit more open in comparison.
[quote=“ski”]What’s your opinion on long term investments. Where is the most sensible region to invest?
Asia?
North America?
Europe?
Emerging Markets?
Individual Countries?
[/quote]
depends on what you mean. If you mean saving for your retirement, then you have to ask where am I going to retire?
For example, if you will retire in the US, then the best bet for matching your standard of US living increases in the US over the long-term will come from a portfolio mostly (85-100%) in US assets. Of that, for a, say, 20 year investment, 80% equity, 20% bonds. That’s just very roughly my guess anyhow.
if you simply mean where do we think will perform best over the next few years so I can make a few coppers? Currently my view is Asia.
Why?
US current account deficit. The correction in the deficit that must happen over the long term will put deflationary pressures on the US relative to the rest of the world. Since deflation is unpleasant, this will happen mostly by inflation outside the US rather than deflation inside the US. expect fairly low interest rates to continue in the US, the USD to want to depreciate and Asian central banks flooding their economies with money to prevent their currencies appreciating too fast.
Beneficiaries:
HK (passing from deflation to inflation)
Japan (banks get recapitalised, NPLs decline)
Korea (Another credit cycle starts)
Thailand, too
Also, to an extent, Taiwan, India, etc.
Health warning: Of course, who the @#$% knows? And I might even change my mind tomorrow. But for the moment, I do have some money where my mouth is.
Last Jan. I bought a house (1913 Craftsman, 3,000sq. feet) in the San Joaquin Valley, California. When I was back doing some work on it (actually, a lot…an old house that also needed some serious lovin’) I had people driving up and asking if I was willing to sell. Hot market in California. Huge growth.
The only problem is all that beautiful farm land is going down the path of surburbia. 
People have been saying that for decades. I’m not saying they’re wrong. On the contrary, California real estate has been a great investment for decades, which is why the Bay Area is one of the priciest real estate markets on earth. When I return, I expect I’ll have to pay at least $700,000 for a modest house. Of course it will be gorgeous compared to anything in Taipei. People keep saying the property market in Calif is overpriced, but the demand will never let up and the prices just keep rising.
Land in Arizona or Phoenix suburbs is a good bet and easy to manage from Taiwan. 2 years ago I bought an acre in Queen Creek and watched it skyrocket 120%. 4 months ago, I bought another one and its gone up 20%. All the California investors are going to Phoenix to invest now.
I don’t think you can go wrong buying property in places that have nice weather.
Would you rather buy a place because the garage is big enough to store a snowblower or buy a place because it has a built in swimming pool?
Actually, I’d like both, maybe somewhere like Bend, Oregon
escapehomes.com/main.aspx?Ta … eTownID=16
Skiing, hiking, cycling, swimming, whitewater rafting, golf, etc.
Or maybe Colorado. I visited my brother in Denver this Summer. They have sunshine more than 300 days per year, warm most of the year, just an hour and a half drive to great skiing and hiking (my bro has a 2d house in the mountains that they use year round), something like 54 peaks over 14,000 feet, so many neighborhoods with huge green lawns, large trees and nice houses for 1/2 the price of California, professional football, baseball, basketball and hockey, a great zoo, symphony, art and natural history museums, thriving economy including tech business, etc. My bro was trying to convince me to move there instead of Cal, and it’s tempting.
I have heard that due to lack of water, they paint the lawns in colorado…
The best long-term investment is yourself.
[quote=“Okami”]Easy
You are your best investment. Anything else is too unstable and dependent on the whimsical views of others.[/quote]
I already tried that and now look at me.