By John R Manning March 16, 2011
Up until now all most investors have heard is CHINA CHINA CHINA and for good reason, it is the largest undeveloped population in the world. There are is big money to be made as that country grows and the desires of the population come in line with the developed world. That being said, like with any good thing, it will not last forever. Already some companies are beginning to move out of China, because the risk of a crash or a market changing event is getting to high. Now some might wonder what a market changing event would be. An example of which would be a currency revaluation or even more importantly a forced currency revaluation through protective tariffs like the US congress has talked about doing already. Entire industries that is viable now would disappear over night and it would significantly curtail the market in China for domestic players. So if the risk is to high for the big boys is it to high for me too? That is for you to decide, remember their is still a lot of money to be made in China, but the risk premium for your investments should be going up as well.
The really big money to be made will be is if you can predict where the capital is going after it leaves China. You will be able to buy businesses on the ground floor and make huge, huge, huge returns on your money and have a smile on your face during the next time a bubble burst. So where is the money going? Good question and I don’t think anyone can answer with 100% certainty, but anyone who follows the market over here is almost certain of where the money is going. ASEAN, Association of South East Asian Nations. Well what is that? I think the US government was asking the same questions a few years ago, now you got Hillary Clinton burning up ASEAN meetings and trying to get a better position for the US interest in the future. To answer that question it is a EU style block of South East Asian Nations that includes Singapore, Thailand, Malaysia, Indonesia and Vietnam. The next question is why does people think the money is coming here? I refer you to the back pages of the Wall Street Journal Asia and to articles about how AIG, Citibank and some of the big brokerage firms are liquidating their holdings in China and buying positions, banks etc. in Singapore and Thailand. These companies did not get big for no reason and they know something that the rest of us most likely don’t know, so following them is a good move in the international market.
In addition run ups in their market have already occurred in the markets of Thailand, Singapore and other countries in the block as well as big appreciation in their currencies. That being said, the economies in these countries still have a long way to go and these countries are going to face big capital flows in the coming years. There economies are not that big so it will not be hard to get a double or a triple in your investment in days. Take Cambodia for example, their GDP is 5 billion dollars. Citibank is looking to invest 2 times that amount of money in ASEAN right now. That is just one company, so what do you think is going to happen to the Cambodian economy after ASEAN explodes? EXACTLY!!!
Finally, how do you find out about what to invest in? Well that is the problem, you are going to have to take some risks with that. Get out of your comfort zone and look at some alternative sources of information and some alternative firms to buy stuff through. The pickings are limited, but there are a few names in the market that can provide you with the investments that you are looking for, Siam Equity is one, or you can try to invest through your local broker in the SET or the Singapore Stock Exchange. If you are looking for the small companies, which most are, then I would suggest Siam Equity, if not then you should go with an exchange traded company. Either way you will do good in this market. GOOGLE Siam Equity or go to http://Siamequity.com for more information. They will be able to assist you with your investment strategy and get you ahead of the coming Tsunami of Capital.
John R Manning has been a local businessman in Thailand for several years now. Prior to that he worked in China and Hong Kong as well as the US.
Article Source: http://EzineArticles.com/expert/John_R_Manning/982304