Blog > International Investing > Blog article: Investing in Australia
 | Email This Article Email This Article  | 

Investing in Australia

Posted April 7, 2008

‘Australia benefits from minerals, energy and agriculture. Those three trends have been on fire and will continue to be for years to come.’ — Horacio Marquez

by Horacio Marquez

Baltimore — (TFN): The following was taken from Money Morning on TFN. Watch this video.

Today I want to discuss Australia. Australia is one of my preferred places, along with emerging markets, because it benefits from minerals, energy and agriculture. Those three trends have been on fire and will continue to be for years to come.

Australia’s economy, however, has been so hot that they have been forced to raise interest rates to 7.25% in order to squelch some incipient inflation. Inflation is, right now, well on its way to being well under control, and this will allow Australia to start cutting rates pretty soon. In fact, they’ve already let it be known in the market that they have already reached the end of their tightening process.

In this way, Australia will not only start benefiting from local interest rates that are going down, but they’re going to benefit from the reversal of the credit crunch as it gets addressed in the U.S. And in the U.S., the credit crunch is well on its way to being reversed. In this situation, Australian banks have led the declines with very significant drops. However, should we want to invest in Australian banks in the United States, their ADRs are extremely liquid.

Therefore, the vehicle for investment of choice, in my opinion, is to play the Australian rebound is the Australian ETF, symbol EWA. Do not miss on Australia.

Horacio Marquez is an editor for the investment research services Money Map Report, the Money Map VIP Trader and the free daily email, Money Morning, which brings you the news of the world markets every single day. Learn more about Money Morning…

______________________________________

Profits Are Up 1,056.2% for This Wisconsin Company

Commodities are on a tear — and so is mining equipment. This "pick-and-shovel" company has already sold out two-thirds of its equipment for 2008. Australia, Canada and China are battling for orders. And the Street hasn’t figured it out yet. All the details are in our Power Plays Report.   Click here for the full report.

______________________________________


Related Articles


Posted by Horacio Marquez · Filed Under International Investing 

Comments

close Reblog this comment
Powered by Disqus · Learn more
blog comments powered by Disqus