International Stocks
A recent poll on stockweb.com has returned some amaizing but all expected results regarding the best investments for 2010.
The poll asked a simple question ” What are the best investments vehicles for 2010?” and this is how the answeres totaled up:
- International Stocks 50%
- Energy Commodities 35%
- Precious metals 35%
- US stocks 28%
- Soft commodities 17%
- Bonds 14%
According to this numbers there is a feeling of optimism transpiring and validates a solid faith in an economic rebound. However it is interesting to see that 50% of participants indicated International Stocks as their best approach to investing in 2010. It’s interesting because not longer than 5 years ago when I was running a hedge fund, this particular investments were labeled as above normal risk and many investors steered clear of emerging markets such as Brazil and Argentina to name a few.
Today, partly due to a much more cohesive and fluid world stock market, these investments are more and more appealing and one does not have to buy shares in a mutual fund dedicated to international stocks but can rather personally place a buy or sell order on the Moscow stock exchange or Buenos Aires or other. Back in 2005 Charles Schwab through their institutional accounts branch would charge me up to $1350 one way – either buy or sell – for a trade. Today E*Trade and other major brokerage firms will charge as little as $21 for trades in Germany and France.
Before you get the fireworks out and start celebrating make note that “Emerging Markets” are still subject to high commissions and trade fees not to mention that are still considered a very risky investment tool. If you can;t afford to loose the money – don’t place the trade!
If it was for my money, I would go – like always did – with Fidelity Investments (preferably the institutional desk if you can) or American Express Advisers (if your net assets allow you access to them).
