Fin 504 Slp

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Category: Business and Industry

Date Submitted: 07/28/2011 01:15 PM

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With the markets going global, it’s hard to avoid the possible returns from investing in international markets. For many of us, investing in international markets isn’t something we’d feel comfortable with. A good way to get around the need to do extensive research into the market in order to purchase individual stocks and bonds is to purchase funds on the AMEX international index. Exchange traded funds on the AMEX international index lists foreign market funds you can purchase fairly easily and securely. Not saying it’s a sure bet investment, just saying your transaction will be more secure then dealing directly with a foreign market. It’s easy to do the research on these funds. You just have to go to www.amex.com/indexshares and you will find international exchange traded funds you can purchase.

After reviewing the funds online, I decided to make an investment into two different funds. One fund I chose because of the possible returns associated with the up and coming market. The country is stable and their market is becoming more liberal. There is still the possibility of loosing everything but the risk is worth it. I chose MSCI Taiwan Index Fund (EWT) and would put $50,000 of my imaginary funds. The fund is currently trading at 11.68 which is a little below its fifty-two week high but it’s still about its fifty-two week low. I wouldn’t put too much into the market in the beginning but would plan to reinvest as the market progresses. I like that they have a lot in information technology because that is the hot industry in Asian markets right now. The second fund I chose was because of the stability I expect out of this investment. I need a little diversity even if it’s not my money. I chose S&P Europe 350 Index Fund (IEV) for the stability that comes with it. Its currently trading at 79.90 which is close to its fifty-two week high. Europe is a strong emerging economy and I expect good things out of this fund. They have a good spread from...