Breaking News: China Cuts Investments to the US

China, foreign investment December 6th, 2008

According to Robert Hsu’s latest email report, China’s sovereign wealth fund has decided to cut its investments to the US.

He says that “the $200 billion China had earmarked for overseas investments will now be plowed back into China Banks… the nation also plans to spend another $586 billion on new highways and railroads.”

But can you trust someone who can’t get the spelling difference between “their” and “they’re” right?  Hsu makes a lot of spelling mistakes for a professional of any kind.  I don’t think such things are fluff or frill.  Spelling is constitutional of language use and reflects upon someone even after they’ve left university.  If anything, it means he wrote his letter in haste and wasn’t concerned to look it over and didn’t put Quality into it.  Even worse, maybe he gets someone overseas to write it for him and thus he and his own expertise has very little to do with it at all!

Do you receive Roberst Hsu’s letters?

Can you confirm that China’s sovereign wealth fund(s) have stopped future US investment?

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Investing in Latvia and Eastern Europe

foreign investment, guest post, international economy August 18th, 2008

Among us there are many investors who are looking for new markets to pursue. Stock markets, real estate markets, precious metals and so on. Also, everyone among us is looking for new and profitable ways to invest and where and when to invest. This post will cover investing in Latvia and other Eastern European countries.

Most of the Eastern Europe countries are brand new countries with new, young economies. After the Soviet Union collapsed, many ex-Soviet countries gained their independence in the early 90’s, which means that they have fresh economies and fresh markets to pursue.

Latvia for Gold

Latvia, at the moment, isn’t in a very good position. Since Latvia was accepted into the EU the inflation rate has grown rapidly, and at the moment the inflation rate is 20%. The stock market is really small and already crowded with investors. Investing in real estate is also a bad idea at the moment. A few years ago there was a big explosion in the real estate market. Banks were giving out loans left and right, but now, many people can’t pay the loans, and banks do not give out those loans so easily now. This also caused a crisis in the Latvian real estate market. Experts predict that the new Latvian real estate explosion could happen in 2010, when the inflation rate is going to be lower, and the average person’s income will raise. This means that year of 2010 could be a really great year to invest in the Latvia’s real estate market.

At the moment the precious metals market is booming in Latvia, however. It’s really profitable to invest now in silver and gold. Many people have invested in silver and gold coins - which means they hold the value of the metal and the coin - and it is really profitable. But the stock market over the next few years looks like it is going to stay the same.

Ukraine and Russia for Stocks

Lately, according to stats, Ukraine has a real stock market explosion. Many people are already investing in the Ukraine’s stock market. This country is advancing quite rapidly, and investors around the world are already entering Ukraine’s stock market. While Ukraine could be too late for some people to invest, Russia is showing the same economical growth that Ukraine had two years ago, which means that in the next two years Russia’s stock market could explode as well and attract many investors.

Bulgaria and Romania for Real Estate

Bulgaria and Romania are now real goldmines for real estate. These two countries are poor, but this could be a perfect investment. Romania and Bulgaria are now in the same economical state where Latvia was 10 years ago. This means that real estate is really, really cheap in these two countries. But since Bulgaria and Romania joined EU recently, the prices will go up the same as they did in Latvia. And those who have invested or will invest in the near future, could probably have a ROI over 450%. Because the buildings and lands are dirt cheap. Two story house, fully decorated and “working” with land, at the coast of the Black Sea, which is one of the most exotic places in Europe, costs only about $50,000 (USD). So, you can just imagine the potential profit.

If you are searching for new markets, then Eastern Europe could be one of the places to start with. These countries have great potential in terms of economic growth.

This post was written by TheMoneyac. TheMoneyac is a 17 year-old affiliate marketer. While building his affiliate marketing business, TheMoneyac is also building “brick-and-mortar” and online assets that generate multiple income streams. To find out more visit http://www.TheMoneyac.com

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Buy Stocks Direct with MoneyPaper’s Guide to Direct Investment Plans

DRIPs, brokers, foreign investment June 13th, 2008

In a previous post, I discussed the benefit of investing in stocks directly using dividend reinvestment plans (also known as direct purchase plans, direct reinvestment plans, or direct stock purchase plans - there are some slight pragmatic differences here, but nothing that should prevent you from getting started and enrolling). In this post I would like to go into more detail on a specific method of direct investing. This involves buying stocks directly using MoneyPaper.

MoneyPaper is the name of an online and print magazine that publishes directories of direct investment plans listed on American stock exchanges. It also includes Canadian and other foreign stocks (eg., Toyota, Nestle, BP) in their ADR (American Depository Receipt) form on the NYSE and NASDAQ. Online, MoneyPaper is located at http://www.directinvesting.com.

The MoneyPaper guide is more than just a directory. It also discusses the larger picture of “how to build wealth DRIP by DRIP” by investing without a broker. It explains what DRIPs are, how to create a diversified DRIP portfolio, and how to enrol in DRIPs using the Temper Enrolment Service.

Temper of the Times Investor Services is a broker that specializes in doing DRIP enrolments and is affiliated with MoneyPaper for helping MoneyPaper subscribers get started with their first dividend reinvestment program. It’s only $50 (a one-time charge) for enrolling in a plan through MoneyPaper, and you get half-off ($25) if you’re already a MoneyPaper subscriber. For this reason it’s probably the easiest way to get started investing in securities.

Stocks You Can Buy Commission-Free (No Broker)

The guide lists almost 1,000 different companies and the types of direct stock purchase and reinvestment plans they offer. Some of the more well-known US companies that offer DRIPs include Costco (COST: NSDQ), Domino’s Pizza (DPZ: NYSE), Equifax (EFX: NYSE), Fannie Mae (FNM: NYSE), Home Depot (HD: NYSE), JP Morgan Chase (JPM: NYSE), Mattel (MAT: NYSE), Proctor & Gamble (PG: NYSE) and Texas Instruments (TXN: NYSE). There is quite a selection. With this amount of companies that you can buy directly into, who needs to invest with a broker?

What’s even more amazing, from my own perspective, is that you can even DRIP quite a few foreign companies listed in New York under their ADRs. This is probably the best way to invest foreign, as well. You don’t have to worry about trying to figure out how to buy Chinese companies on the Shanghai or Hong Kong exchanges. Here’s a list of some that already allow DRIPs:

China Eastern Airlines Corp. (CEA: NYSE) -
China Mobile (CHL: NYSE) -
China Southern Airlines (ZNH: NYSE) -
China Telecom Corp. (CHA: NYSE) -
China Unicom (CHU: NYSE) -
Guangshen Railway Co. Ltd. (GSH: NYSE) -

Not all of these companies are 100% fee-free. China Eastern Airlines’ plan, for example, charges $5 (+10 cents/share) for each optional cash purchase. Home Depot’s plan charges 5% on reinvestments of the amount of dividends reinvested (but only up to a maximum of $2.50). Even still, these fees are cheaper than many brokers. And as I explained in my last post, many plans have absolutely no fees at all. These are the ones you want to look out for first. Lehman Brothers Holdings Inc. (LEH: NYSE), for example, pays all fees for reinvestment, certificates and optional cash purchases (although there is a $10 fee to sell if you ever decide to withdraw from the DRIP). These figures are all based on the 18th edition of MoneyPaper’s Guide (pictured above). You should always check the websites of the companies in question (as well as their Transfer Agents) for the most up-to-date figures and information. Some of them do change.

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