Above is the Chinese symbol for DRAGON. Emerging
Dragon.com chose a dragon as its symbol because of what it represents in Asia. Unlike European dragons that are seen as villains, Asian dragons are considered GOOD FORTUNE and often grant wishes. Now that the dragon of Asia is "emerging" on the world scene, we thought the name was perfect. It might even grant your wishes.
Most major Asian stock indexes posted gains of 1 percent or more in the wake of Tuesday's strong reading on U.S. retail sales. Japan's benchmark Nikkei (.N225) climbed 111.31 points to 10,328.93. The broader Topix (.TOPX) rose 0.75 percent to 939.48.
The EMERGING DRAGON Mission
Asia’s rising influence in the world is the result of a staggering population hungry to modernize. As Asian economies develop, their booming middle class wants all the material goods we Americans now enjoy. If you take a look at the numbers you will understand why Asia offers such an amazing opportunity. The United States has a population of about 303 million people. Now take a look at Asia. China 1.3 billion, India 1.1 billion, Indonesia 231 million, and Japan 130 million.
After World War II, Japan was pretty much like China is today. It wasn’t overly industrial and most of their citizens were poor peasants. In the decades that followed, Americans invested in Japan growing it into the second largest economy in the world behind the United States. Japan has less than half the population of the US. Just imagine the potential of a China with more than four times our population!
All those people will have the ability to buy a lot of stuff over the coming decades. Just imagine the new markets opening up! Most people in the USA already have a cellular phone, computer, car, etc. Not so in China and India. People there want all the things we take for granted. They also need infrastructure as they modernize. Asian governments are increasingly healthy with huge cash reserves earmarked for public works projects. It makes the meager American market look like a laughable drop in the bucket.
There are all sorts of ways you can profit from an emerging Asia. They are simple and accessible. It can be as easy as investing in a mutual fund containing investments in Asia. If you are more ambitious you could make business contacts and import or export. You could get a degree making you attractive to companies doing business with Asia. You can travel there seeking opportunities or move there temporarily to teach English or work with a company making money there. It's all up to you.
The purpose of EMERGING DRAGON is to point you in the right direction and get you started. The landscape is constantly changing so check back here for the latest updates and insider tips.
IF YOU ARE…
A STUDENT NOT YET FINISHED WITH HIGH SCHOOL… your opportunities are limitless. You can get a head start on everyone. You may want to consider studying an Asian language now. Japanese and Mandarin Chinese are the best choices. See the EmergingDragon.com Languages page. Millions of people speak them and they will be the future languages of commerce along side English. Just imagine how valuable you will be to any international company when you speak fluent Japanese or Mandarin. There are some high school exchange programs that will send you to Asia for anywhere from a month to a year to study. This would be an amazing opportunity to soak up the culture and figure out how to benefit from an emerging Asia. Also, your language skills will blossom when you are immersed in it. This experience also looks great on a college application. It will give you a head start thinking about your college major.
A COLLEGE STUDENT… you now have more opportunities than ever to position yourself for a career benefiting from an emerging Asia. Most colleges offer Asian studies and Asian language courses. Many business courses also focus on the Pacific Rim. Consider your major carefully. See the EmergingDragon.com Jobs page. What you choose could be in high demand for companies doing business with Asia. College offers more opportunities for learning an Asian language and studying abroad. Living in Asia for a semester or a year will pay infinite dividends. Experiment a bit and see what appeals to you. After all… it is college.
ABOUT TO GRADUATE COLLEGE… you must be very excited to begin your career. If you followed our advice above then you are already poised to benefit from an emerging Asia. Recruiters should be lining up to hire you. If not, you still have many options. The job market is tough out there and finding your first job can be a major challenge. Consider teaching English in Asia for a year or two. See the EmergingDragon.com Jobs page. If you are adventurous, it will be like being paid for an extended vacation. It will also give you valuable experience and help you decide which direction you will head next. Not into teaching? There are many other jobs in Asia for Americans with skills, and you don’t have to go all the way to Asia to benefit. Many American companies do business with Asia and people with knowledge of the area are always in demand.
A YOUNG PROFESSIONAL… then you have already started to establish your life. Perhaps it’s not all you expected it to be or you are looking for a change. You could follow the advice we outlined for recent college graduates and run off to Asia to teach English or pursue another line of work. It will be a lot of fun and just imagine the stories you will have to tell when you get back! Of course, you also have the option to stay in the United States and pursue a career working with Asia. See the EmergingDragon.com Jobs page. Perhaps your life is just fine and you want to profit from an emerging Asia. Scroll down to the bottom of this page to find ways to Invest in Asia.
IN MID CAREER… then you might be having a mid life crisis. Since you are older, you probably have some money in the bank. Take a little bit of it and travel to Asia. See the EmergingDragon.com Travel page. Wander around and check out the multitude of splendors the varied cultures of Asia offer. Most likely you will return excited about what you saw. See the EmergingDragon.com Countries of Asia page to learn more about each nation. Your age puts you in a better position to invest than your younger colleagues so take advantage of amazing opportunities in an emerging Asia. Scroll down to the bottom of this page to find ways to Invest in Asia. If you are having a severe mid life crisis then you could act like a college kid and escape to Asia yourself. Many middle aged people are picking up roots and starting over in the Far East. It could be a lot of fun and if you don’t like it you can always come home. You could also go back to school to gain a skill in demand or use the skills you already possess. Companies in the United States and Asia need all sorts of workers. They include engineers, doctors, teachers, and business people. See the EmergingDragon.com Languages and Jobs page. You might be surprised by what you find.
RETIRED AND LOOKING FOR SOMETHING TO DO… then you are in the best position of all. You have the most valuable commodity of all, time. Buy an air pass from Cathay Pacific Airlines and spend a month or two flying around to all the countries of Asia. See the EmergingDragon.com Travel page. You will never be the same after an experience like that. Who knows? Maybe you will like it so much you want to stay there for a while. Some parts of Asia like Thailand, Indonesia and the Philippines are ridiculously cheap. Many Americans retire there. If you are looking for a long term investment for yourself or relatives, then scroll down to the bottom of this page to find ways to Invest in Asia. It could end up putting your grandchildren through college. Whatever you choose to do, have fun. You deserve it!
A
weaker dollar raises the prices we pay for imported goods. American
companies often use that as an excuse to raise their prices since
foreign goods cost more. That means everything you buy is more
expensive and your dollars are worth less. It is then to your
advantage to have a chunk of your money in a better performing currency. Despite the worldwide economic decline, Asian markets
have racked up strong gains over the past few years. The returns were
made even stronger as the dollar fell. Companies in the Standard
& Poor's 500-stock index are catching on. America's largest
companies make about 45 percent of their money overseas. As they are
paid in foreign currencies they make extra money as they convert it
back to weakened dollars.
The US dollar is at record lows against many foreign currencies and all indications are that the trend will continue. Economists at Standard & Poor's project the dollar will to fall through 2009 and then stay flat through 2011.
If the big companies can do that, so can you! Here's
some advice from Paul Barrett, head of foreign-exchange trading at J.P.
Morgan Chase. He says investors with a moderate tolerance for risk
should have at least 15 percent to 20 percent of their holdings in non-dollar-denominated assets.
There
is an easy way to do this, profit from a limp dollar and keep your
investments relatively safe. It is to own foreign stock and bond
mutual funds that don't hedge against currency movements.
Here's some advice from Bill Rocco, senior analyst at Morningstar Inc. He says most investors should own
one or two international stock funds: one that holds large-cap stocks
in big markets and one invested either in smaller-cap stocks or
emerging markets.
It's not as difficult as you may think! Essentially there are three ways.
EASIEST: Buy a mutual fund that invests in Asia.
It's as simple as opening an account and sending a check. Take a look
at all the charts to the right. They show the best performing mutual
funds for diversified Pacific/Asia, Pacific/Asia excluding Japan, and
Japan. Japan is often removed from Pacific/Asia funds because it is
already a fully developed economy and there isn't as much room for
growth. Be sure to read all information about a fund before
investing! Some of these mutual funds come with fees or "loads" that
will eat up your profits. I prefer "no load" funds from companies like Vanguard, T. Rowe Price, and Fidelity. Always check the fees on these accounts. They can eat up your profits too.
ADVANTAGE: EASY TO DO
DISADVANTAGE: NOT AS AGRESSIVE AS OTHER INVESTMENTS. Then again, that is an advantage to many who aren't as daring with their money.
EASIER: Buy Asian stocks through
American depositary receipts (ADRs) or exchange-traded funds (ETFs).
These trade like US stocks but are made up of stocks from Asia.
Essentially a financial institution buys the stock in Asia and sells
you a share of it. They take a fee for this but everything is done in
dollars and you wont have to deal with currency converstion. Of
course, that can be a negative if the dollar keeps falling. You want
your money in a stronger currency if the dollar is weak.
ADVANTAGE: EASY WAY TO GET INVEST IN INDIVIDUAL STOCKS FROM ASIA.
DISADVANTAGE: STILL PRICED IN DOLLARS SO YOU'RE NOT FULLY TAKING ADVANTAGE OF STRONG ASIAN CURRENCIES AGAINST THE DOLLAR.
EASY: Buy securities directly on foreign exchanges.
It's more complicated than buying domestic stocks but not impossible.
There are brokerage companies on-line that can hook you up. Most
notable are E*Trade and Interactive Brokers. You can also deal with a full service broker but expect high fees.
Always check those fees and read all info before investing!
ADVANTAGE: YOU ARE INVESTING DIRECTLY IN THE MOST EXPLOSIVE MARKETS IN THE WORLD.
DISADVANTAGE: MORE RISKY AND HIGHER FEES.
