Asia’s economies have remained more hardy than most as they’ve faced down a variety of economic challenges and kept debt low. Related exchange traded funds (ETFs) may offer this stability to your portfolio as well.
Western economies are still borrowing money and some (think Greece) are looking at international bailouts. The United States is running record deficits that some fear aren’t sustainable. Asia, however, has stayed conservative toward spending and borrowing since the financial crisis of the late ’90s. [Why Economic Freedom Matters.]
Vikas Bajaj and Keith Bradsher for The New York Times reports that even the Asian economies that shrank during the economic meltdown have escaped the worst. [More Growth Forecast for China.]
Economists say countries have to spend during recessions, increasing deficits and debts. But there are concerns about the long-term effect of the huge debt on the well-being of Europe and the United States. Economists points out that the longer Western economies take to deal with overspending, the more rapid Asia’s dominance on the world stage will be. [Indonesia ETF: Another BRIC in the Wall?]
For more stories about Asia, visit our Asia category.
- iShares FTSE/Xinhua China 25 (NYSEArca: FXI)
- iShares MSCI Malaysia Index (NYSEArca: EWM)
- PowerShares FTSE RAFI Asia ex-Japan Portfolio (NYSEArca:PAF)
- iShares MSCI Japan (NYSEArca: EWJ)
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.