Here are three articles on investing overseas. As I have previously stated, I am a big proponent of so-called emerging markets, not because i understand them better but because i think they have so much room to grow.
Two articles in favor of international investments
Emerging-Markets Jungle
Strong Three-Year Run Reaps Big Gains for U.S. Investors; How to Get Into the Game Now
November 26, 2005
Investing in emerging markets has had a reputation for being something like plunking coins into a slot machine: There may be the occasional payout, but the odds are stacked against you.
In recent years, however, the rules have improved in several significant ways, making the chances of winning over the long run considerably better.
For investors with an appetite for risk, the changes have contributed to some sizable jackpots lately. Since the end of 2002, the Morgan Stanley Capital International Emerging Markets stock index has surged 128% -- the most powerful three-year rally that stocks of developing countries have seen. That compares with a 31% rise in the Dow Jones Industrial Average in the same period.
Share prices have surged in former crisis flash points such as Russia and Argentina and in once-ignored markets that include Pakistan and Egypt. Some have even benefited from European politics: Turkey's stock market has surged 46% this year in dollar terms, helped by the start of talks that might lead to the country's joining the European Union; those talks may promote sounder economic policies.
Interest in emerging markets has never been higher. These stock funds world-wide have received $15.5 billion in net inflows so far this year, already surpassing last year's record, according to EmergingPortfolio.com Fund Research.
A Contrarian View of Japanese Stocks: Now Is a Good Time to Buy Them
November 30, 2005
The land of the rising stocks is finally back in business. But if you want to go along for the ride, you better pick your funds carefully.
The fact is, most foreign-stock mutual funds have relatively little invested in Japan, despite mounting evidence of the country's economic recovery. Intrigued by Tokyo? Here's why you want healthy exposure to the Japanese market -- and how best to get it.
My contention: If you have little or nothing invested in Japan, this is a great time to boost your holdings. Japanese banks are cleaning up their loan portfolios, the threat of deflation seems to be passing, profit margins are improving, there's a government push for economic reform, and over a sixth of Japanese trade is with fast-growing China.
And one against
Global Growth Faces Some Threats
Report Cites U.S. Trade Gap And Likely ECB Rate Rise As Economic Impediments
November 30, 2005
PARIS -- World economic growth is strengthening yet faces obstacles from worsening global imbalances, including U.S. deficits, and an interest-rate increase the European Central Bank plans as early as tomorrow, according to a report by the Organization for Economic Cooperation and Development.
...
"These imbalances largely reflect inadequate macroeconomic policies," the report said, singling out the U.S. deficit, as well as "mercantilist" exchange-rate policies in some Asian economies that the OECD said were aimed at winning global market share. It didn't name the offenders, though China has faced the most criticism for its exchange-rate policies.
