International Investing Using ETF's
International investing using ETF's is a growing popular option for investors looking to explore the world of international stocks. Individually purchasing stocks from overseas markets is often very difficult to do. More so, many individual investing firms and brokers simply do not offer the option of investing in international stock. Yet, with ETF's, or Exchange Traded Funds, the ability to trade in international markets has gotten a lot easier to manage, allowing more people to be able to take advantage of the lucrative markets of international stock.
International Investing Using Mutual Funds
International investing using mutual funds is one of several methods American investors can invest in international markets. As an investor, that is likely looking for a location to see significant growth consider the benefits of the international markets. Many investors are looking towards markets in emerging countries like China and South American countries because of their current rapid growth. Yet, it is also important to take into consideration how you can invest in this way. Since it is very hard to buy private stocks on the international markets, you may want to consider other methods to do so.
Understanding the Hang Seng Index
If you are considering investing into the Chinese stock market, one of the first concepts that you will need to become familiar with is the Hang Seng Index, also abbreviated as HSI. This index is a free float-adjusted index based upon the market capitalization of weighted stocks based in Hong Kong. This index measures the performance and daily changes occurring in the largest companies of the Hong Kong stock market, similar to the primary S&P 500 Index found in the US on their New York Stock Exchange (NYSE).
China's Banking System
Only six years ago, China expert Gordon Chang declared that China's banks were doomed to imminent collapse, an event that would bring the entire Chinese economy to its knees. Chang's book on the subject was widely read and entirely wrong. I have been on record for years predicting the very opposite: that China will experience an unprecedented economic boom, ultimately creating the largest economy in the world. In the process its banks will become worldwide financial giants.