I've been thinking a lot about this lately. Industry after
industry in decline, the Fed printing money so fast that
gold bugsare multiplying like rabbits ... the U.S. is
facing some big challenges. I think it's time you moved out
Uh, what are you talking about? I like it here. Land of the
free and home of the brave, y'know? Besides, did you see how my garden
did this year? The asparagus was great, and those tomatoes -- mmm.
Nothing tastes as good as a local tomato, you know that. You want me to
flee all this?
No, no, hear me out. I don't mean actually physically leaving. I
like the local tomatoes too. I'm talking about stocks. I think you
should be investing more overseas.
Dude, I'm already overseas. I've got Microsoft (Nasdaq: MSFT),
right? They sell that new Windows 7 thing all over the world. I know
they do -- I read it on the Internet. And earlier this year you were
telling me about Ford (NYSE: F) and how that airplane guy --
-- Alan Mulally --
-- yeah, him. You told me he's turning Ford into one big
global company, and about all the good cars they have coming from
Europe. So they're global too, and I bought some when it was cheap,
like you said. Now I hear they're turning a profit. I'm covered.
Listen for a minute, will you? The dollar was strong for a while earlier this year, but it's been weakening lately,
and it could keep getting weaker over the long haul. All other things
being equal, that means companies that do business in other currencies
are only going to get more expensive in dollar terms over time.
Yeah, but don't these big global companies have ways to
manage that? If they're smart enough to do business all over the world,
they should be smart enough to trade futures or whatever so that they
can deal. Right?
Sure. But wouldn't it be even better if that currency trend were working for you? Maybe on top of some great growth stories?
Is this where you tell me to go buy Chinese stocks? I've got that China ETF the guy on TV talked about, that iShares FTSE/Xinhua China 25 Index (FXI) thing. I'm good, I keep telling you.
China's a great place to start. But not with that ETF, because it kind of stinks. It's not the ETF's fault; it's the index. It's full of fat slugs.
Slugs? What are you talking about? It's China, the boom-boom
emerging superpower. You're the guy who told me to buy Ford and you're
telling me about slugs?
Hey, Ford is up 500% since you bought it. Stop your complaining. But
that index is full of big companies that are mostly owned by the
Chinese government. Those companies aren't going to take off anytime
soon, and if the government decides to dump their holdings, the stock
prices will tank. If you want growth in China, you've got to go buy
growth stocks, real emerging companies.
Uh-huh. And how do I find these things?
Dude, this is The Motley Fool. Poke around. Look at China Green Agriculture (AMEX: CGA), which makes organic fertilizer and has a lot of fans at the Fool. Look at Indian companies like Tata Motors (NYSE: TTM) and Dr. Reddy's Laboratories, which have given investors big returns over the past year. Look at China Digital TV (NYSE: STV), a play on China's conversion from analog to digital television. Some small companies are still cheap, because most investors flock to the bigger stocks.
Or take a look at Huaneng Power (NYSE: HNP)
-- China's still developing, so electricity is still a growth business.
This company's a big player, and it's getting bigger -- and it pays a
dividend. Or Mindray Medical (NYSE: MR), which makes medical imaging --
Wait. Stop. You know, I watch TV -- I know China's
government isn't the biggest fan of private property. They're
Communists! How do I know they won't be out at the vanguard of the
whosis seizing my company's means of production or whatever?
Look, the Chinese government knows it has a good thing going right
now. They need Western investment and Western markets. There's
definitely risk, but I think it's not a big deal.
OK, suppose I agree with you. All those stocks you just
named sound good. But they're all traded on U.S. exchanges. Doesn't
that mean they've already gotten pretty big? How do I find the ones
that haven't popped yet?
That takes some more digging. But that kind of digging is exactly what they do at the Motley Fool Global Gains newsletter. In fact, the Fool's sending the team to India to scout out some great investing opportunities.
Yeah, yeah. I don't subscribe to that one. And money's tight --
-- so take a free trial. It'll cost you nothing and you can spend 30
days poking around and picking their brains. Seriously, you need to get
on this soon.
OK, fine. I'll take a look if you go rake all the leaves out of my garden already. What do I need to do?
© 2009 UCLICK, L.L.C.